Explaining efficiency differences among large German and Austrian banks

By D. Hauner. Social Science Research Network, 2004

249 citations recorded by the source corpus.

Cost-efficiency, scale efficiency, and productivity change are estimated by data envelopment analysis; and cost-efficiency is regressed on explanatory variables. No evidence is found for average productivity responding to deregulation over the period studied. State-owned banks are found to be more cost-efficient (likely owing to cheaper funds) and cooperative banks to be about as cost-efficient as private banks. Increasing economies of scale but decreasing economies of scope provide rationale for M&As among banks with similar product portfolios. Interbank and capital market funding is found to be more cost-efficient than deposits when the cost of retail networks is controlled.

Subfields: Economics and Econometrics, Finance, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/380635a653eae067573046aaf7883fb73338f83f

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Citations in the corpus

Estimating the technical and scale efficiency of Greek commercial banks: The impact of credit risk, off-balance sheet activities, and international operations (2008, background): “18 Hence, following Hauner (2005), QML (Huber/White) standard errors and covariates are calculated.”
Assessing bank efficiency and performance with operational research and artificial intelligence techniques: A survey (2010, unknown): “Furthermore, Luo (2003) calculates a measure of ‘‘marketability” efficiency in an attempt to capture the value of the bank in the stock market.”
The Effect of Board Size and Composition on the Efficiency of UK Banks (2011, background): “Therefore, following Hauner (2005) and Pasiouras (2008a,b) among others, QML”
Determinants of Bank Profitability in a Developing Economy: Empirical Evidence from the Philipinnes (2008, background): “Hauner (2005) offers two potential explanations regarding how size could have a positive impact on bank performance.”
International evidence on the impact of regulations and supervision on banks’ technical efficiency: an application of two-stage data envelopment analysis (2007, unknown): “, 2002b; Hauner, 2005; Pastor and Serrano, 2005; Kasman and Yildirim, 2006), we control for macroeconomic conditions within each country with the annual growth in GDP (GRDGR) and the annual rates of inflation (INF). Yildirim and Philippatos (2006) indicate that favourable economic conditions will af”
The determinants of Islamic banks' efficiency changes: Empirical evidence from the MENA and Asian banking sectors (2009, background): “Thus, following among others Hauner (2005), Islamic banks’ efficiency changes 131 Pasiouras (2007) and Sufian (2007), QML (Huber/White) standard errors and covariates are calculated.”
The impact of non-traditional activities on the estimation of bank efficiency: International evidence (2010, methodology): “6 As suggested in Mester (1996), and consistent with Berger and Mester (1997), Altunbas et al.”
A Network DEA Model with Super Efficiency and Undesirable Outputs: An Application to Bank Efficiency in China (2014, methodology): “) Following previous studies [38,39,40], the annual growth rate of GDP is applied to gauge the economy development.”
Performance and Merton-type default risk of listed banks in the EU: A panel VAR approach (2009, background): “This type of analysis does not provide evidence of causality between the two concepts, but rather examines whether certain risk characteristics are more prevalent among inefficient banks (see for example Maudos et al., 2002; Hauner, 2004; Carvallo and Kasman, 2005; Yildirim and Philippatos, 2007).”
Competition and efficiency in the Dutch life insurance industry (2008, background): “the inefficiencies that have generally been found in the banking literature which spread – widely – around 20% (Berger and Humphrey, 1997; Altunbas et al., 2000; Hauner, 2005; Kasman and Yildirim, 2006).”
Determinants of Bank Profitability in a Developing Economy: Empirical Evidence from the China Banking Sector (2009, background): “Hauner (2005 ) offered two potential explanations for which size could have a positive impact on bank performance.”
Determinants of bank efficiency during unstable macroeconomic environment: Empirical evidence from Malaysia (2009, result): “The results are in accordance with earlier findings by Isik and Hassan (2003b) on Turkish banks, Hasan and Marton (2003) on Hungarian banks, and Sathye (2003) on Indian banks.”
Performance evaluation of the English Premier Football League with data envelopment analysis (2006, methodology): “DEA is a popular tool to analyse efficiency in many fields, such as banking (Hauner, 2005); financial services (Fiordelisi and Molyneux, 2004); hospitals (Dervaux et al., 2004); agriculture (Latruppe et al., 2004); regional development (Leonida et al., 2004; Price and Weyman Jones, 1996).”
Bank-Specific and Macroeconomic Indicators of Profitability - Empirical Evidence from the Commercial Banks of Pakistan (2011, result): “The positive relation of size with profitability is in accordance with (Hauner, 2005; Akhtar, Ali, &Sadaqat, 2011).”
Bank specific and macroeconomic determinants of bank profitability: Empirical evidence from the China banking sector (2009, background): “Hauner (2005) offers two potential explanations for which size could have a positive impact on bank performance.”