Is There a Single Frontier in a Single European Banking Market?

By J. Bos, H. Schmiedel. Social Science Research Network, 2007

250 citations recorded by the source corpus.

This paper attempts to estimate comparable efficiency scores for European banks operating in the Single Market in the EU. Using a data set of more than 5000 large commercial banks from all major European banking markets over the period 1993-2004, the application of meta-frontiers enables us to assess the existence of a single and integrated European banking market. We find evidence in favor of a single European banking market characterized by cost and profit meta-frontiers. However, compared to the meta-frontier estimations, pooled frontier estimations tend to underestimate efficiency levels and correlate poorly with country-specific frontier efficiency ranks. JEL Classification: G21, L11, L22, L23

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

View Paper: https://www.semanticscholar.org/paper/ad4e195aa516e226ef244635d9c2d6b01ccf0290

Citations in the corpus

• Efficiency and Risk in European Banking (2011, unknown): “That is, for the first time the data also covers the period of monetary union that has led to radical changes in the European financial system increasing banks’ pressures towards operate more efficiently (Goddard et al., 2007, Bos and Schmiedel, 2007).”