search query: @indexterm Economies of scale / total: 179
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| Author: | Lang, G. Welzel, P. |
| Title: | Grösse und Kosteneffizienz im deutschen Bankensektor |
| Journal: | Zeitschrift für Betriebswirtschaft
1997 : VOL. 67:3, p. 269-283 |
| Index terms: | BANKING BANK MERGERS COSTS COST EFFECTIVENESS ECONOMIES OF SCALE GERMANY |
| Language: | ger |
| Abstract: | Since end of 1990 more than 25% of all German banks disappeared, in most cases through mergers among smaller savings and cooperative banks. The main driving force behind this "merger-mania" is the desire to exploit economies of scale and scope. However, as opposed to the United States, there is very little empirical knowledge about the costs of banking in Germany. Using 1992 data of 1490 German universal banks covering about 40% of the industry, we specify a multi-product translog cost function and control for cost inefficiency when estimating and evaluating the technology of banking. Scale economies are found to exist up to a size of 2 to 5 billion DM of total assets, with diseconomies for larger banks being caused by non-operating costs. There is no evidence of economies of scope in universal banking. |
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