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estimated profit efficiency. However, compared with cost inefficiency, revenue inefficiency affects more overall profitability … would be wrong and (ii) how revenue and cost efficiencies contribute to profit efficiency. Using data from U.S. commercial ….5% is due to revenue inefficiency and 4.7% to cost inefficiency. Cost efficiency weighs more than revenue efficiency in …
Persistent link: https://www.econbiz.de/10013059150
to assess the efficiency of profit management for banks has been developed. This approach, is named as Profit Identity … and second to assess the profit performance efficiency with the application of Profit Identity Approach. The study reveals … that banks react mostly in a comparable manner for the profitability performance over the period of time …
Persistent link: https://www.econbiz.de/10012917848
policies on bank profit efficiency estimated with a production frontier function. Our results show that more regulatory … requirements decrease bank profit efficiency. We confirm this finding under various assumptions for the bank inputs and outputs … used in their production process. We also find that the impact of financial consumer protection policies on bank profit …
Persistent link: https://www.econbiz.de/10012928612
impact of income, asset, and funding diversifications on the cost and profit efficiency of the US commercial banks over the …) effect on the cost efficiency of the banks, while funding (income) diversification has a significantly negative (positive …) effect on profit efficiency. Our findings reveal that during the global financial crisis asset diversification is not …
Persistent link: https://www.econbiz.de/10013223117
evidence for scale economies: for most banks in the sample, efficiency and profitability increase with bank size. Using an …This paper analyzes efficiency and profitability in the Swiss banking sector over the period 1997-2019. We find strong … efficiency and lower profitability appear driven by certain aspects of their business model. Our results further indicate that …
Persistent link: https://www.econbiz.de/10013269806
financial deregulation and transition period. We first measure bank cost and profit efficiencies using the stochastic frontier … efficiency over the period 2004-2010. By employing β- convergence and σ- convergence we assess the speed at which banking markets … convergence of cost and profit efficiency levels towards the averages in the entire EU, the old EU countries and the new EU …
Persistent link: https://www.econbiz.de/10013032116
In this paper, we measure and analyse profit efficiency and productivity of Vietnamese banks using a newly developed … index approach which is based on the directional distance function. Our findings indicate that the average bank operates … quite far below the frontier of the best-practice bank, mainly due to allocative inefficiency rather than technical …
Persistent link: https://www.econbiz.de/10009741239
z-score), then apply the stochastic frontier analysis (SFA) to obtain the risk-return efficiency score for each bank …, and finally conduct ordered logit regressions of bank ratings on estimated risks, risk-return efficiency, and the inverse …This paper investigates whether there is any consistency between banks’ financial strength ratings (bank rating) and …
Persistent link: https://www.econbiz.de/10014192502
This study uses the distribution free approach to investigate cost efficiency in a panel of Greek banks over 1993 … reforms were supposed to provide an opportunity to Greek banks to improve their efficiency and to enhance their … that important cost X-inefficiencies are in place. Some evidence is provided that bank characteristics such as bank size …
Persistent link: https://www.econbiz.de/10013404660
performance, that is, profitability and efficiency. Considering bank size, the results show a diverse impact of regulation on bank … efficiency and profitability of banks. This study aims to examine the impact of the introduction of two major regulatory changes … performance. Regarding large- and medium-sized banks, regulation positively affects both efficiency and profitability, whereas …
Persistent link: https://www.econbiz.de/10014288974