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Cost efficiency of Belgian banks during the 90s


  • Laurent Weill


This paper aims to analyze the cost efficiency of Belgian banks for the period 1992-2000. Efficiency is measured with stochastic frontier approach. Our results are: (a) Efficiency level of Belgian banks is about 72%, meaning the existence of strong potential gains in cost efficiency for Belgian banks. (b) Efficiency of Belgian banks strongly increased between 1992 and 2000. (c) Commercial and saving banks have an advantage in efficiency relative to cooperative banks. (d) Efficiency of Belgian banks is around average of 4 EU countries (France, Germany, Italy, the Netherlands).

Suggested Citation

  • Laurent Weill, 2006. "Cost efficiency of Belgian banks during the 90s," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 49(1), pages 21-36.
  • Handle: RePEc:bxr:bxrceb:y:2006:v:49:i:1:p:21-36

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    References listed on IDEAS

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    More about this item


    banking; Belgium; efficiency; stochastic frontier approach;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages


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