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Eficiencia Bancaria en Chile: un Enfoque de Frontera de Beneficios

  • José Luis Carreño
  • Gino Loyola
  • Yolanda Portilla

This paper characterizes the evolution of the efficiency X in the Chilean banking industry over 1987 to 2007, based on a profit frontier approach. Our results suggest that over this period the Chilean banking sector has attained just a 15% over its maximum profits. This inefficiency basically arises from a technical source rather than an assignative one, and mainly affects domestic and small banks. Nevertheless, the level of efficiency X of the industry as a whole has dramatically improved since the late 1990’s, which is consistent with important economic, technological and regulatory transformations.

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Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 603.

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Date of creation: Dec 2010
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Handle: RePEc:chb:bcchwp:603
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