Financial Sector Efficiency: Concepts, Measurement, Theoretical and Empirical Evidence
FINANCIAL MARKETS IN CENTRAL AND EASTERN EUROPE, M. Balling, F. Lierman, A. Mullineux, eds., pp. 61-98, Routledge, 2004
Posted: 19 Dec 2008
Date Written: 2004
We provide a decision-oriented literature review on (1) the perception of financial efficiency (in a macroeconomic sense) and its measurement (2) theoretical as well as empirical findings on the setup of efficient financial systems and (3) possible interaction between financial sector efficiency, instability and regulation. This contribution provides a basis for policy makers, market participants and other relevant institutions to be able to tap the financial sector's full growth enhancing potential. With regard to EU-enlargement this may be of special relevance to the accession countries in securing long-term growth and in speeding up real convergence to the EU. Additionally this paper identifies aspects in the financial efficiency debate that need more attention then hitherto given and therefore represents also a valuable guideline for future research.
Suggested Citation: Suggested Citation