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Cost Efficiency in UK and Irish Credit Institutions

Author

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  • Fitzpatrick, Trevor

    (Central Bank and Financial Services Authority of Ireland)

  • McQuinn, Kieran

    (Central Bank and Financial Services Authority of Ireland)

Abstract

This paper presents aggregated cost efficiency scores for a balanced panel of British and Irish credit institutions and relates these scores to loan loss reserves as a first step in investigating their usefulness as possible indicators of financial fragility. The efficiency scores are oobtained using the two most popular methods of efficiency measurement - data envelopment analysis (DEA) and the stochastic frontiers approach.

Suggested Citation

  • Fitzpatrick, Trevor & McQuinn, Kieran, 2004. "Cost Efficiency in UK and Irish Credit Institutions," Research Technical Papers 3/RT/04, Central Bank of Ireland.
    • Handle: RePEc:cbi:wpaper:3/rt/04
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    References listed on IDEAS

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    Cited by:

    1. Trevor Fitzpatrick & Kieran McQuinn, 2007. "Measuring bank profit efficiency," Applied Financial Economics, Taylor & Francis Journals, vol. 18(1), pages 1-8.
    2. Behr, Andreas & Tente, Sebastian, 2008. "Stochastic frontier analysis by means of maximum likelihood and the method of moments," Discussion Paper Series 2: Banking and Financial Studies 2008,19, Deutsche Bundesbank.

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    More about this item

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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