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A review of bank efficiency and productivity

Author

Listed:
  • Vaneet Bhatia

    () (Indian Institute of Management Raipur)

  • Sankarshan Basu

    (Indian Institute of Management Bangalore)

  • Subrata Kumar Mitra

    (Indian Institute of Management Raipur)

  • Pradyumna Dash

    (Indian Institute of Management Raipur)

Abstract

The objective of this study is to present a systematic literature review in the context of bank efficiency and productivity. It focuses on the recent developments related to empirical methodological advances and new dimensions added to the ever-growing field of bank performance analysis. Selected research papers were coded in terms of their key objectives and were segregated into 11 themes—Branch, Comparison, Consolidation and Expansion, Deregulation and Regulation, Environment, Input–output, Methodological advances, Non-traditional activities, Risk, Stock performance and Others. The 103 selected studies were further analysed based on efficiency measures, input–output approaches and methodology. While summarising the extant literature on bank efficiency and productivity, the ongoing debate regarding the optimal input output approaches and ideal frontier techniques for bank performance analysis has also been dealt with. The current study also highlights the possible future research avenues in this area.

Suggested Citation

  • Vaneet Bhatia & Sankarshan Basu & Subrata Kumar Mitra & Pradyumna Dash, 2018. "A review of bank efficiency and productivity," OPSEARCH, Springer;Operational Research Society of India, vol. 55(3), pages 557-600, November.
  • Handle: RePEc:spr:opsear:v:55:y:2018:i:3:d:10.1007_s12597-018-0332-2
    DOI: 10.1007/s12597-018-0332-2
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    More about this item

    Keywords

    Banking; Performance; Efficiency; Productivity; Literature review; Survey;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative

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