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Bank branches efficiency under management and regulatory constraints

Author

Listed:
  • Gustavo Ferro
  • Daniel Lema
  • Francisco Schiffrer

Abstract

The main purpose of this paper is to assess the cost-efficiency of Banco Ciudad de Buenos Aires’s bank branches using a Stochastic Frontier Analysis (SFA). Owing to the results, management can decide on a new branching dimension. Also, if some regulatory or managerial limits could be lifted, such as the closure or opening of new branches without central bank authorization, or redundancy staff reduction, the results could be important for management. We identify best and worst behaved branches. The more cost-efficient branches and the least costefficient ones differ in their size and input mix. Nonetheless, they present a similar output mix

Suggested Citation

  • Gustavo Ferro & Daniel Lema & Francisco Schiffrer, 2019. "Bank branches efficiency under management and regulatory constraints," Estudios Gerenciales, Universidad Icesi, vol. 35(151), pages 122-134, June.
    • Handle: RePEc:col:000129:017380
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    File URL: https://www.icesi.edu.co/revistas/index.php/estudios_gerenciales/article/view/3133
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    efficiency frontiers; banking branches: banking managemen;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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