This study examines the impact of bond markets on both bank profit and cost efficiency. To do so, we employ the … that both bond market development and bond market structure are relevant to bank efficiency. Bond market development … generally has a positive (negative) effect on bank profit (cost) efficiency. Given the level of a country’s bond market …

function with a timevariable stochastic efficiency term we show that positive scale and scope effects from a merger arise only … taken over by others are less efficient than the average bank in the same size class, but exhibit on average the same … efficiency as the acquiring firms. For the post-merger phase, our empirical results provide no evidence for efficiency gains from …