lawsuit, to identify the real effects of these guarantees on the allocation of credit (“allocative efficiency”). Using matched … bank/firm data, we find that public guarantees reduce allocative efficiency. With guarantees in place, poorly performing …

bank. This reflects a higher margin/profitability. However, it also shows less efficiency of the intermediation mechanism …. Therefore, there is no difference between banking profitability and efficiency of the intermediation.Novelty - With the same … implications noted between the micro objective of banks (advantage as a business entity) and the efficiency of intermediation as …

efficiency. We find that with guarantees in place unproductive firms invest more and maintain higher rates of sales growth …

This paper investigates the contribution of cost, profit and value efficiency in explaining bank performance for a … sample of U.S. listed bank holding companies from 2004 to 2006. In the first stage of the analysis, we estimated efficiency … scores and made a descriptive analysis. We found a strong correlation between profit and value efficiency scores although …