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US Bank Efficiency and FED Activity

Author

Listed:
  • Mohammad I. Al Masud

    (Ibn Haldun University)

  • Levent Kutlu

    (University of Texas at Arlington)

Abstract

We examine the relationship between cost efficiency of US banks and FED activity level. It turns out that FED actions have a positive effect on cost efficiencies of the US banks. In particular, as the number of FED actions increases, the cost efficiencies of the US banks increases. This illustrates the importance of FED's role in reaching a more cost efficient banking system

Suggested Citation

  • Mohammad I. Al Masud & Levent Kutlu, 2018. "US Bank Efficiency and FED Activity," Economics Bulletin, AccessEcon, vol. 38(4), pages 2047-2059.
    • Handle: RePEc:ebl:ecbull:eb-17-00992
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I4-P188.pdf
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    References listed on IDEAS

    as
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    9. Mustafa U. Karakaplan & Levent Kutlu, 2017. "Endogeneity in panel stochastic frontier models: an application to the Japanese cotton spinning industry," Applied Economics, Taylor & Francis Journals, vol. 49(59), pages 5935-5939, December.
    10. Tran, Kien C. & Tsionas, Efthymios G., 2013. "GMM estimation of stochastic frontier model with endogenous regressors," Economics Letters, Elsevier, vol. 118(1), pages 233-236.
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    13. Pavlos Almanidis, 2013. "Accounting for heterogeneous technologies in the banking industry: a time-varying stochastic frontier model with threshold effects," Journal of Productivity Analysis, Springer, vol. 39(2), pages 191-205, April.
    14. Kutlu, Levent, 2010. "Battese-coelli estimator with endogenous regressors," Economics Letters, Elsevier, vol. 109(2), pages 79-81, November.
    15. Mustafa U. Karakaplan & Levent Kutlu, 2019. "School district consolidation policies: endogenous cost inefficiency and saving reversals," Empirical Economics, Springer, vol. 56(5), pages 1729-1768, May.
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    More about this item

    Keywords

    Stochastic Frontier; Efficiency; US Banks; Federal Reserve System;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • G2 - Financial Economics - - Financial Institutions and Services

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