This paper aims to analyze the cost efficiency of Belgian banks for the period 1992-2000. Efficiency is measured with stochastic frontier approach. Our results are: (a) Efficiency level of Belgian banks is about 72%, meaning the existence of strong potential gains in cost efficiency for Belgian banks. (b) Efficiency of Belgian banks strongly increased between 1992 and 2000. (c) Commercial and saving banks have an advantage in efficiency relative to cooperative banks. (d) Efficiency of Belgian banks is around average of 4 EU countries (France, Germany, Italy, the Netherlands).
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