Banking Operational Cost in the Balkan Region under a Quadratic Loss Function
This paper presents of theoretical specification of a quadratic loss function based on forward looking rational expectations to model the underlying dynamics of operational performance of the banking industry. As an empirical application we examine the determinants of total operating costs within a dynamic panel analysis in the Balkan region that is the South East Europe (SEE) over the period 1998-2005. Results show that operating performance is positively related to loan quality and the asset size or the bank's market share, whilst the speed of adjustment to the long run operational cost is substantial in magnitude.
Volume (Year): 29 (2009)
Issue (Month): 2 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kwan, Simon H., 2003.
"Operating performance of banks among Asian economies: An international and time series comparison,"
Journal of Banking & Finance,
Elsevier, vol. 27(3), pages 471-489, March.
- Simon H. Kwan, 2002. "Operating performance of banks among Asian economies: an international and time series comparison," Working Paper Series 2002-01, Federal Reserve Bank of San Francisco.
- Simon H. Kwan, 2002. "Operating Performance of Banks among Asian Economies: An Internaitonal and Time Series Comparison," Working Papers 132002, Hong Kong Institute for Monetary Research.
- Akhigbe, Aigbe & McNulty, James E., 2003. "The profit efficiency of small US commercial banks," Journal of Banking & Finance, Elsevier, vol. 27(2), pages 307-325, February.
- Manuel Arellano & Stephen Bond, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 277-297.
- Tom Doan, "undated". "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Altunbas, Yener & Liu, Ming-Hau & Molyneux, Philip & Seth, Rama, 2000. "Efficiency and risk in Japanese banking," Journal of Banking & Finance, Elsevier, vol. 24(10), pages 1605-1628, October.
- Mester, Loretta J., 1996. "A study of bank efficiency taking into account risk-preferences," Journal of Banking & Finance, Elsevier, vol. 20(6), pages 1025-1045, July.
- Huang, Tai-Hsin & Shen, Chung-Hua, 2002. "Seasonal cointegration and cross-equation restrictions on a forward-looking buffer stock model of money demand," Journal of Econometrics, Elsevier, vol. 111(1), pages 11-46, November.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-08g20008. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.