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Efficiency Analysis In Banking Firms: An International Comparison

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Author Info
Francisco Pérez García () (Instituto Valenciano de Investigaciones Económicas)
Javier Quesada Ibañez () (Instituto Valenciano de Investigaciones Económicas)
José Manuel Pastor Monsálvez (Instituto Valenciano de Investigaciones Económicas)

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Abstract

The intensive process of financial European integration, together with the profound transformation and deregulation that has taken place in the Spanish Banking System, justifies the evaluation of its efficiency in comparison with that of other banking systems. In this context, the aim of this study is to analyze the productivity, efficiency and differences in technology of several banking systems. Using a non-parametric approach together with the Malmquist index, we compare the efficiency, productivity and differences in technology of different European and US banking systems for the year 1992. Finally, for a subsample of banks belonging to the same group of countries, using real as opposed to nominal quantities of labor, we introduce corrections on efficiency measures, by introducing the services provided to customers by the branch network and the degree of solvency determined by capital ratio. When we consider these other features in computing efficiency, we find significant changes in the ranking of particular banks according to efficiency. El intenso proceso de integración financiera europea, junto con la profunda transformación y desregulación que ha tenido lugar en el Sistema Bancario Español, justifica la evaluación de su eficiencia en comparación con otros sistemas bancarios de su entorno. En este contexto, el propósito del presente estudio ha sido analizar las diferencias en productividad, eficiencia y tecnología de varios sistemas bancarios. Mediante el uso con. unto de una técnica frontera no paramétrica y el índice de Malmquist se analizan las diferencias de productividad, eficiencia y tecnología de diferentes sistemas bancarios europeos y el sistema bancario norteamericano. Finalmente, para una submuestra de bancos pertenecientes al mismo grupo de países y utilizando magnitudes físicas de empleo en lugar de nominales, se introducen algunas correcciones en las medidas de eficiencia al considerar los servicios provistos por las oficinas a la clientela y el grado de solvencia de las empresas, determinado por el coeficiente de solvencia. Cuando se calculan las medidas de eficiencia considerando estas características, se encuentran cambios significativos en la ordenación de los bancos de acuerdo con su eficiencia.

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File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-1995-18.pdf
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Publisher Info
Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 1995-18.

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Length: 36 pages
Date of creation: Jan 1995
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Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:1995-18

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Keywords: Análisis de Envolvimiento de los datos; productividad; Sistema Bancario. Data Envelopment Analysis; Productivity ; Banking Systems.;

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