Main determinants of efficiency and implications on banking concentration in the European Union

This study aims to measure the main determinants influencing bank efficiency. We suggest that the bank efficiency ratio, obtained from the income statement, is positively related to the size of a bank in terms of total assets. However, we believe that such a relationship cannot be maintained for ban...

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Detalles Bibliográficos
Autores: Bautista Mesa, Rafael, Molina Sánchez, Horacio Daniel, Ramírez Sobrino, Jesús Nicolás
Tipo de recurso: artículo
Fecha de publicación:2014
País:España
Institución:Universidad Loyola Andalucía
Repositorio:Brújula
OAI Identifier:oai:repositorio.uloyola.es:20.500.12412/1281
Acceso en línea:http://hdl.handle.net/20.500.12412/1281
Access Level:acceso abierto
Palabra clave:Bank efficiency
Bank size
Concentration
Diversification
Wholesale funding
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spelling Main determinants of efficiency and implications on banking concentration in the European UnionBautista Mesa, RafaelMolina Sánchez, Horacio DanielRamírez Sobrino, Jesús NicolásBank efficiencyBank sizeConcentrationDiversificationWholesale fundingThis study aims to measure the main determinants influencing bank efficiency. We suggest that the bank efficiency ratio, obtained from the income statement, is positively related to the size of a bank in terms of total assets. However, we believe that such a relationship cannot be maintained for banks over a certain size. By the use of the regression analysis method, we analyze the link between bank efficiency and bank size, using a sample of 3952 banks in the European Union. Our results show that the efficiency ratio stops improving for banks with total assets over $25 billion. Previous literature, using different analysis techniques, does not reach an agreement on this point. Furthermore, our study identifies further variables which negatively affect the efficiency of banks, such as competition and lending diversification, or affect them positively, such as the wholesale funding ratio and income diversification. Our findings imply the need for different bank policies depending on total assets, in order to limit the size and activities of banks.2014info:eu-repo/semantics/articlehttp://hdl.handle.net/20.500.12412/1281reponame:Brújulainstname:Universidad Loyola AndalucíaIngléshttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessoai:repositorio.uloyola.es:20.500.12412/12812026-06-24T12:48:37Z
dc.title.none.fl_str_mv Main determinants of efficiency and implications on banking concentration in the European Union
title Main determinants of efficiency and implications on banking concentration in the European Union
spellingShingle Main determinants of efficiency and implications on banking concentration in the European Union
Bautista Mesa, Rafael
Bank efficiency
Bank size
Concentration
Diversification
Wholesale funding
title_short Main determinants of efficiency and implications on banking concentration in the European Union
title_full Main determinants of efficiency and implications on banking concentration in the European Union
title_fullStr Main determinants of efficiency and implications on banking concentration in the European Union
title_full_unstemmed Main determinants of efficiency and implications on banking concentration in the European Union
title_sort Main determinants of efficiency and implications on banking concentration in the European Union
dc.creator.none.fl_str_mv Bautista Mesa, Rafael
Molina Sánchez, Horacio Daniel
Ramírez Sobrino, Jesús Nicolás
author Bautista Mesa, Rafael
author_facet Bautista Mesa, Rafael
Molina Sánchez, Horacio Daniel
Ramírez Sobrino, Jesús Nicolás
author_role author
author2 Molina Sánchez, Horacio Daniel
Ramírez Sobrino, Jesús Nicolás
author2_role author
author
dc.subject.none.fl_str_mv Bank efficiency
Bank size
Concentration
Diversification
Wholesale funding
topic Bank efficiency
Bank size
Concentration
Diversification
Wholesale funding
description This study aims to measure the main determinants influencing bank efficiency. We suggest that the bank efficiency ratio, obtained from the income statement, is positively related to the size of a bank in terms of total assets. However, we believe that such a relationship cannot be maintained for banks over a certain size. By the use of the regression analysis method, we analyze the link between bank efficiency and bank size, using a sample of 3952 banks in the European Union. Our results show that the efficiency ratio stops improving for banks with total assets over $25 billion. Previous literature, using different analysis techniques, does not reach an agreement on this point. Furthermore, our study identifies further variables which negatively affect the efficiency of banks, such as competition and lending diversification, or affect them positively, such as the wholesale funding ratio and income diversification. Our findings imply the need for different bank policies depending on total assets, in order to limit the size and activities of banks.
publishDate 2014
dc.date.none.fl_str_mv 2014
dc.type.none.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv http://hdl.handle.net/20.500.12412/1281
url http://hdl.handle.net/20.500.12412/1281
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.rights.none.fl_str_mv http://creativecommons.org/licenses/by-nc-nd/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv http://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv openAccess
dc.source.none.fl_str_mv reponame:Brújula
instname:Universidad Loyola Andalucía
instname_str Universidad Loyola Andalucía
reponame_str Brújula
collection Brújula
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15.228081

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