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Explaining Efficiency Differences Among Large German and Austrian Banks

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  • Mr. David Hauner

Abstract

Cost-efficiency, scale efficiency, and productivity change are estimated by data envelopment analysis; and cost-efficiency is regressed on explanatory variables. No evidence is found for average productivity responding to deregulation over the period studied. State-owned banks are found to be more cost-efficient (likely owing to cheaper funds) and cooperative banks to be about as cost-efficient as private banks. Increasing economies of scale but decreasing economies of scope provide rationale for M&As among banks with similar product portfolios. Interbank and capital market funding is found to be more cost-efficient than deposits when the cost of retail networks is controlled for.

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  • Mr. David Hauner, 2004. "Explaining Efficiency Differences Among Large German and Austrian Banks," IMF Working Papers 2004/140, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2004/140
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    References listed on IDEAS

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    8. Bos, Jaap W. B. & Heid, Frank & Koetter, Michael & Kolari, James W. & Kool, Clemens J. M., 2005. "Inefficient or just different? Effects of heterogeneity on bank efficiency scores," Discussion Paper Series 2: Banking and Financial Studies 2005,15, Deutsche Bundesbank.
    9. International Monetary Fund, 2006. "Germany; Selected Issues," IMF Staff Country Reports 06/436, International Monetary Fund.
    10. Matthews, Kent & Guo, Jianguang & Zhang, Xu, 2008. "X-efficiency versus Rent Seeking in Chinese banks: 1997-2006," Cardiff Economics Working Papers E2008/26, Cardiff University, Cardiff Business School, Economics Section.
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