In Finance, Size Matters
This study investigates the relationship between production efficiency in financial intermediation and financial system size. The study predicts and tests for the existence of "systemic scale economies" (SSE) effects, whereby value-maximizing intermediaries operating in large systems are expected to have lower costs of production, risk absorption, and reputation signaling than intermediaries operating in small systems. The study explores the mechanics of SSEs and estimates their quantitative relevance using a large cross-country banking data panel. The study shows strong evidence in support of SSEs and finds that the institutional environment, risk environment, and market concentration affect significantly the production efficiency of financial intermediation services. Copyright 2004, International Monetary Fund
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 51 (2004)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
|Order Information:||Web: http://www.springer.com/economics/journal/41308/PS2|
When requesting a correction, please mention this item's handle: RePEc:pal:imfstp:v:51:y:2004:i:1:p:2. 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: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.