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A Profit Efficiency Perspective on the Future Strategic Positioning of the Portuguese Banks

Author

Listed:
  • Joana Resende

    (CETE, Faculdade de Economia, Universidade do Porto)

  • Elvira Silva

    (CETE, Faculdade de Economia, Universidade do Porto)

Abstract

The Portuguese banking sector has been recently subjected to important structural changes. The diversification of the supply of financial services, the specialization phenomena and the growing importance of new technologies are changing the sector dramatically. A profit perspective is used to investigate the efficiency performance of the commercial banking sector in Portugal in the period 2000-2004 and infer some implications for the banks´ management strategic orientation. The Nerlovian and an alternative profit efficiency measures are used, illustrating the potentialities of the directional distance functions to the profit efficiency analysis. A decomposition of the alternative profit efficiency measure is also proposed.

Suggested Citation

  • Joana Resende & Elvira Silva, 2007. "A Profit Efficiency Perspective on the Future Strategic Positioning of the Portuguese Banks," CEF.UP Working Papers 0702, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:cetedp:0702
    as

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    File URL: http://www.fep.up.pt/investigacao/cete/papers/dp0702.pdf
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    References listed on IDEAS

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    Cited by:

    1. Stephanie McWhinnie & Kofi Otumawu-Apreku, 2013. "Evaluating Profit Efficiency of the South Australian Rock Lobster Fishery: Nerlovian and Directional Distance Function Approach," School of Economics and Public Policy Working Papers 2013-18, University of Adelaide, School of Economics and Public Policy.
    2. A. R. Jayaraman & Pradip Bhuyan, 2020. "Impact of NPA and loan write-offs on the profit efficiency of Indian banks," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(1), pages 35-48, March.
    3. Stephanie McWhinnie & Kofi Otumawu-Apreku, 2013. "Profit Efficiency of the South Australian Rock Lobster Fishery: Nerlovian and Directional Distance Function Approach," School of Economics and Public Policy Working Papers 2013-13, University of Adelaide, School of Economics and Public Policy.

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    More about this item

    Keywords

    Banking; Nerlovian profit efficiency; alternative profit efficiency; directional distance functions;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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