Traditionally, financial systems have been bank-based or market-based. The efficiency properties of these systems are compared in various dimensions. These include risk sharing, information provision, funding new industries, corporate governance, and law, finance and politics. Both systems have advantages and disadvantages. With regard to stability, both bank-based and market-based systems are ...

According to a frequently cited finding by Berger et al (1993), X-inefficiency contributes 20% to cost-inefficiency in western banks. Empirical studies of Chinese banks tend to place cost-inefficiency in the region of 50%. Such estimates would suggest that Chinese banks suffer from gross cost inefficiency. Using a nonparametric bootstrapping method, this study decomposes cost-inefficiency in Ch...

There are two typical sub-processes in bank production– deposit generation and loan generation. Aiming to open the black box of input-output production of banks, and provide comprehensive and accurate assessment on the efficiency of each stage, this paper proposes a two-stage network model with bad outputs and supper efficiency (US-NSBM). Empirical comparisons show that the US-NSBM may be promi...

One of the most complicated decision making problems for managers is the evaluation of bank performance, which involves various criteria. There are many studies about bank efficiency evaluation by network DEA in the literature review. These studies do not focus on multi-level network. Wu (Eur J Oper Res 207:856–864, 2010) proposed a bi-level structure for cost efficiency at the first time. In t...

The study investigates the effect of bank fintech on efficiency in Vietnam, an emerging country Southeast Asia. Bank variables are formulated using intangible assets, based existing publications regarding and utilization technologies by commercial banks. In addition, variable is calculated Data Envelopment Analysis approach. Our hypothesis suggests a positive effect, which aligns with previous ...

We study a model where the aggregate trading of currency speculators reveals new information to the central bank and affects its decision on whether to abandon a fixed exchange rate regime. We show that the learning process gives rise to informational complementarities among traders, which generates coordination motives in their trading and reduces the informational content of the market signal...

This paper investigates the growth dynamics of the bank sectors in the OECD area over the period 1985-1994 and examines whether the structural financial reforms of the late 1980s have affected their growth path. Based on a test of Gibrat’s law of proportionate effect, we find that the 1985-89 period was characterised by size convergence, implying that smaller bank sectors were expanding more ra...