Bank efficiency ratios in Latin America
Previous literature has shown a strong association between the financial sector and economic growth, but theory predicts ambiguous associations between banking efficiency and size or market share. The relationships among efficiency ratios, absolute scale, and rank category are explored for a relevant subset of banks in each of four Latin American countries. The results indicate a robust association between efficiency and absolute scale but not between efficiency and relative scale, which suggests that the observed efficiency of larger banks is not an artefact of market power among dominant banks.
Year of publication: |
2005
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Authors: | Forster, Jeremy ; Shaffer, Sherrill |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 12.2005, 9, p. 529-532
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Publisher: |
Taylor & Francis Journals |
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