European Banks Converge with the US Ones Cost-Wise: A Panel Data Analysis (1997-2007)

Abstract

Schinasi (1997) had asserted that European banks are overstaffed and that they face difficulties to control their staff cost compared to the United States ones. In the present paper an effort will be made to show with panel data that during the period 1997-2007 European banks converge with the United States ones regarding the above mentioned cost control. Data source is O.E.C.D. The elaboration of the model is made feasible through the Eviews software package.

Keywords: Econometric models with panel data (single equation), Banking, Interest rates, Labour Market, Labour Cost

JEL Classification: C23, E5, G12, J3