Explaining Efficiency Differences Among Large German and Austrian Banks

24 Pages Posted: 15 Feb 2006

See all articles by David Hauner

David Hauner

International Monetary Fund (IMF) - African Department

Date Written: August 2004

Abstract

Cost-efficiency, scale efficiency, and productivity change are estimated by data envelopment analysis; and cost-efficiency is regressed on explanatory variables. No evidence is found for average productivity responding to deregulation over the period studied. State-owned banks are found to be more cost-efficient (likely owing to cheaper funds) and cooperative banks to be about as cost-efficient as private banks. Increasing economies of scale but decreasing economies of scope provide rationale for M&As among banks with similar product portfolios. Interbank and capital market funding is found to be more cost-efficient than deposits when the cost of retail networks is controlled for.

Keywords: Banks, efficiency, Germany, Austria, data envelopment analysis

JEL Classification: G21, G34

Suggested Citation

Hauner, David, Explaining Efficiency Differences Among Large German and Austrian Banks (August 2004). IMF Working Paper, Vol. , pp. 1-24, 2004. Available at SSRN: https://ssrn.com/abstract=878965

David Hauner (Contact Author)

International Monetary Fund (IMF) - African Department ( email )

1700 19th Street, NW
Washington, DC 20431
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
111
Abstract Views
499
rank
248,357
PlumX Metrics