Banking Operational Cost in the Balkan Region under a Quadratic Loss Function
AbstractThis paper presents of theoretical specification of a quadratic loss function based on forward looking rational expectations to model the underlying dynamics of operational performance of the banking industry. As an empirical application we examine the determinants of total operating costs within a dynamic panel analysis in the Balkan region that is the South East Europe (SEE) over the period 1998-2005. Results show that operating performance is positively related to loan quality and the asset size or the bank's market share, whilst the speed of adjustment to the long run operational cost is substantial in magnitude.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 29 (2009)
Issue (Month): 2 ()
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Other versions of this item:
- Mamatzakis, Emmanuel, 2010. "Banking Operational Cost in the Balkan Region under a Quadratic Loss Function," MPRA Paper 24630, University Library of Munich, Germany.
- G2 - Financial Economics - - Financial Institutions and Services
- D2 - Microeconomics - - Production and Organizations
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