| Author: | Berger, A. N. Mester, L. J. |
| Title: | Inside the black box: What explains differences in the efficiencies of financial institutions |
| Journal: | Journal of Banking and Finance
1997 : JUL, VOL. 21:7, p. 895-947 |
| Index terms: | BANKS EFFICIENCY COSTS PROFIT |
| Language: | eng |
| Abstract: | Substantial research effort has lately gone into measuring the efficiency of financial institutions, and it has been found that inefficiencies are quite large, on the order of 20% or more of total banking industry costs and about half of the industry's potential profits. There are different views about the sources of the differences in measured efficiency. This article examines possible sources including differences in efficiency concept, measurement method, and a number of market, bank and regulatory characteristics. Existing literature is reviewed and new evidence is provided. |
SCIMA