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Financial restructuring, crisis, and productivity growth in bank branches: evidence from a large commercial Spanish bank

Author

Listed:
  • Idaira Cabrera-Suárez

    (University of Las Palmas de Gran Canaria)

  • Jorge V. Pérez-Rodríguez

    (University of Las Palmas de Gran Canaria)

  • Simón Sosvilla-Rivero

    (Complutense Institute for Economic Analysis (ICAE), Universidad Complutense de Madrid)

Abstract

We analyse the impact of financial restructuring and economic crises on the evolution of productivity growth within bank branches. We apply the DEA-Malmquist framework for this analysis, utilizing both production and profit approaches. The study is based on data derived from the annual balance sheets of a major Spanish commercial bank for 2011–2014, encompassing the bailout of the Spanish banking system and the second economic downturn in Spain. The key findings are as follows: Firstly, despite severe adjustments and challenging economic conditions, branch productivity exhibited growth across the entire sample period. Secondly, productivity changes were predominantly driven by technological advancements rather than efficiency improvements, underscoring the bank’s notable role in fostering innovation during this time. Thirdly, a decline in the rate of productivity growth and its components was observed, along with an increased number of branches reporting negative changes, particularly among non-super-efficient branches.

Suggested Citation

  • Idaira Cabrera-Suárez & Jorge V. Pérez-Rodríguez & Simón Sosvilla-Rivero, 2025. "Financial restructuring, crisis, and productivity growth in bank branches: evidence from a large commercial Spanish bank," International Economics and Economic Policy, Springer, vol. 22(3), pages 1-23, July.
    • Handle: RePEc:kap:iecepo:v:22:y:2025:i:3:d:10.1007_s10368-025-00661-z
    DOI: 10.1007/s10368-025-00661-z
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    More about this item

    Keywords

    Bank branches; Total factor productivity index; Catch-up; Technological change; Order-α; DEA-Malmquist-based outliers;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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