US Bank Efficiency and the Fed Activity
20 Pages Posted: 26 Sep 2017 Last revised: 12 Oct 2017
Date Written: 2017
We examine the relationship between cost efficiency of US banks and FED activity level. It turns out that FED actions have a positive effect on cost efficiencies of the US banks. In particular, as the number of Fed actions increases, the cost efficiencies of the US banks increases. This illustrates the importance of FED’s role in reaching a more cost efficient banking system.
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