Working Paper
Inside the black box: what explains differences in the efficiencies of financial institutions?
Abstract: Over the past several years, substantial research effort has gone into measuring the efficiency of financial institutions. Many studies have found that inefficiencies are quite large, on the order of 20 percent or more of total banking industry costs and about half of the industry's potential profits. There is no consensus on the sources of the differences in measured efficiency. This paper examines several possible sources, including differences in efficiency concept, measurement method, and a number of bank, market, and regulatory characteristics. We review the extant literature and provide new evidence using data on U.S. banks over the period 1990-95.
Keywords: Bank loans; Financial institutions;
Access Documents
File(s): File format is text/html http://www.federalreserve.gov/pubs/feds/1997/199710/199710abs.html
File(s): File format is application/pdf http://www.federalreserve.gov/pubs/feds/1997/199710/199710pap.pdf
Authors
Bibliographic Information
Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: Finance and Economics Discussion Series
Publication Date: 1997
Number: 1997-10