Profit Efficiency of U.S. Commercial Banks: A Decomposition

The profit efficiency of small US commercial banks

This study investigates the profit efficiency (PROFEFF) of small banks (those under $500 million in total assets) for 1990–96. Assuming that small banks and large banks use the same production technology, we find, consistent with Berger and Mester [J. Bank. Finance 21 (1997) 875], that small banks are more profit efficient than large banks. Small banks in non-metropolitan statistical areas (non...

Does financial regulation affect the profit efficiency and risk of banks? Evidence from China's commercial banks

The goal of financial regulation is to enable banks to improve liquidity and solvency. Stricter regulation may be good for bank stability, but not for bank efficiency. This research aims to examine whether banks have met the CBRC’s standard of financial regulations and explores how the previously implemented financial regulations have affected bank efficiency and risk in the past. In addition, ...

X-Efficiency of Commercial Banks in China

This analysis investigates the efficiency of Chinese commercial banks between 1997 to 2002. DEA method is employed to estimate overall cost, technical, allocative, pure technical and scale efficiency scores. In the second stage regression, ownership, market share and technology are chosen as the underlying driving factors. To minimize the bias arising from the inherent dependency problem, the b...

Multi-Component Efficiency with Shared Resources in Commercial Banks

A Co-Plot- based Efficiency Measurement to Commercial Banks

For the issue of the lack in plotting analysis method in the research of DEA, this paper introduces a new graphic method—Co-Plot. It can demonstrate DMUs and variables visually in two-dimensional space, and enable the analysis of them at the same time. By applying the ratio relationship among variables, Co-Plot can be combined with DEA in a way to display the results of DEA easily and intuitive...