Cost and Profit Efficiency of Bangladeshi Commercial Banks: A Stochastic Frontier Approach

Regulations, supervision and banks’ cost and profit efficiency around the world: a stochastic frontier approach

This paper uses stochastic frontier analysis and Tobit regressions to provide international evidence on the impact of regulatory, supervision and environmental factors on bank efficiency. Our contribution is twofold. First, we use a newly constructed database of 3,086 observations from 677 publicly quoted commercial banks operating in 88 countries to provide cross-country evidence on the determ...

The Assessment of Operational Efficiency of Commercial Banks in India Using Cost to Income Ratio Approach

During the last two decades, financial institutions worldwide have witnessed a lot of stress in managing their margins in wake of the new risks, challenges and increase in the competition posed to them by the factors of liberalization and deregulation. The key to create value and achieve competitive edge lies in the better operational efficiency and productivity of these institutions under such...

The profit efficiency of small US commercial banks

This study investigates the profit efficiency (PROFEFF) of small banks (those under $500 million in total assets) for 1990–96. Assuming that small banks and large banks use the same production technology, we find, consistent with Berger and Mester [J. Bank. Finance 21 (1997) 875], that small banks are more profit efficient than large banks. Small banks in non-metropolitan statistical areas (non...

Does financial regulation affect the profit efficiency and risk of banks? Evidence from China's commercial banks

The goal of financial regulation is to enable banks to improve liquidity and solvency. Stricter regulation may be good for bank stability, but not for bank efficiency. This research aims to examine whether banks have met the CBRC’s standard of financial regulations and explores how the previously implemented financial regulations have affected bank efficiency and risk in the past. In addition, ...

Comparative Analysis of Stochastic Frontier Partially non-parametric and Stochastic Frontier Parametric Methods Case Study: Measuring Cost Efficiency in Wheat Production in Iran