Efficiency of European Banks in the Aftermath of the Financial Crisis: A Panel Stochastic Frontier Approach

Using panel estimates and Stochastic Frontier Analysis this paper aims to contribute the analysis of bank efficiency European banks in aftermath international financial crisis sovereign that seriously affected many EU countries. It also considers hypothetical scenarios exit from some particularly relevant member-states, including Brexit scenario. The results obtained very clearly demonstrate existence statistically significant technical inefficiencies all considered scenarios. Nevertheless, reveal exclusion Italian UK our would be more beneficial decrease banks’ cost than French German banks. Moreover, worst scenario terms five countries were deeply by crises obliged restructure their systems, is, Cyprus, Greece, Ireland, Portugal Spain.