The efficiency of bank branches

Journal of Monetary Economics

Volumn 40, Issue 1, 1997, Pages 141-162

  Berger, Allen N ^a,b   Leusner, John H ^a   Mingo, John J ^c  

^a FEDERAL RESERVE BOARD   (United States)

^b UNIVERSITY OF PENNSYLVANIA   (United States)

^c UNIVERSITY OF CHICAGO   (United States)

Author keywords

Bank; Branch; Efficiency; Merger; Scale

Indexed keywords

EID: 0031234563     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0304-3932(97)00035-4     Document Type: Article

References (36)

1. Akhavein, J.D., Berger, A.N., Humphrey, D.B., 1997. Effects of bank megamergers on efficiency and prices: Evidence from the profit function. Review of Industrial Organization 12, 95-139.
2. Al-Faraj, T., Alidi, A.S., Bu-Bshait, K.A., 1993. Evaluation of bank branches by means of data envelopment analysis. International Journal of Operations and Production Management 13, 45-52.
3. Athanassopoulos, A.D., 1995. Multivariate and frontier analysis for assessing the market and cost efficiency of large scale bank branch networks. University of Warwick, UK.
4. Athanassopoulos, A.D., 1997. Service quality and operating efficiency synergies for management control in the provision of financial services: Evidence from Greek bank branches. European Journal of Operational Research 98, 300-313.
5. Bauer, P. W., Hancock, D., 1993. The efficiency of the Federal Reserve in providing check processing services. Journal of Banking and Finance 17, 287-311.
6. Benston, G.J., 1965. Branch banking and economies of scale, Journal of Finance 20, 312-331.
7. Berger, A.N., 1993. Distribution-free estimates of efficiency in the US banking industry and tests of the standard distributional assumptions. Journal of Productivity Analysis 4, 261-292.
8. Berger, A.N., Hancock, D., Humphrey, D.B., 1993. Bank efficiency derived from the profit function. Journal of Banking and Finance 17, 317-347.
9. Berger, A.N., Hanweck, G.A., Humphrey, D.B., 1987. Competitive viability in banking: Scale, scope, and product mix economies. Journal of Monetary Economics 20, 501-520.
10. Berger, A.N., Humphrey, D.B., 1992. Megamergers in banking and the use of cost efficiency as an antitrust defense, Antitrust Bulletin 37, 541-600.
11. Berger, A.N., Kashyap, A.K., Scalise, J.M., 1995. The transformation of the US banking industry: What a long, strange trip it's been. Brookings Papers on Economic Activity, 2 (1995) pp. 55-218.
12. Berger, A.N., Leusner, J.H., Mingo, J.J., 1994. The efficiency of bank branches, FEDS Working Paper No 94-26, Board of Governors of the Federal Reserve System.
13. Doukas, J., Switzer, L.N., 1991. Economies of scale and scope in Canadian branch banking. Journal of International Financial Markets, Institutions and Money 1, 81-84.
14. Drake, L., Howcroft, B., 1994. Relative efficiency in the branch network of a UK bank: An empirical study, OMEGA International Journal of Management Science 22, 549-557.
15. Drake, L., Howcroft, B. 1995. Measuring the relative efficiency of the selling function: An application of data envelopment analysis to UK bank branches, Loughborough University, UK.
16. Elbadawi, I., Gallant, A.R., Souza, G., 1983. An elasticity can be estimated consistently without a priori knowledge of the functional form, Econometrica 51, 1731-1753.
17. Gallant, A.R., 1981. On the bias in flexible functional forms and an essentially unbiased form: The fourier flexible form. Journal of Econometrics 15, 221-245.
18. Giokas, D., 1991. Bank branch operating efficiency: A comparative application of DEA and the loglinear model. OMEGA International Journal of Management Science 19, 549-557.
19. Linder, J.C., Crane, D.B., 1992. Bank mergers: Integration and profitability, Journal of Financial Services Research 7, 35-55.
20. Lovell, C.A.K., Pastor, J.T., 1997. Target Setting: An application to a bank branch network. European Journal of Operational Research 98, 290-299.
21. McAllister, P., McManus, D., 1993. Resolving the scale efficiency puzzle in banking. Journal of Banking and Finance 17, 389-405.
22. Mitchell, K., Onvural, N.M., 1996. Economies of scale and scope at large commercial banks: Evidence from the fourier flexible functional form. Journal of Money, Credit, and Banking 28, 178-199.
23. Murphy, N.B., Orgler, Y.E., 1982. Cost analysis for branching systems: Methodology, test results, and implications for management. Journal of Financial Research 5, 181-188.
24. Oral, M., Yolalan, R., 1990. An empirical study on measuring operating efficiency and profitability of bank branches. European Journal of Operational Research 46, 282-294.
25. Parkan, C., 1987. Measuring the efficiency of service operations: An application to bank branches, Engineering Costs and Production Economics 12, 237-242.
26. Pastor, J.T., 1993. Efficiency of bank branches through DEA: The attracting of liabilities. Working Paper, Universidad de Alicante, Alicante.
27. Savage, D.T., 1991. Mergers, branch closings, and cost savings. Working Paper, Board of Governors of the Federal Reserve System.
28. Schaffnit, C., Rosen, D., Paradi, J.C., 1997. Best practice analysis of bank branches: An application of DEA in a large Canadian bank. European Journal of Operational Research 98, 269-289.
29. Schmidt, P., Sickles, R.C., 1984. Production frontiers and panel data, Journal of Business and Economic Statistics 2, 367-374.
30. Sherman, H.D., Gold, F., 1985. Bank branch operating efficiency: Evaluation with data envelopment analysis, Journal of Banking and Finance 9, 279-315.
31. Sherman, H.D., Ladino, G., 1995. Managing bank productivity using data envelopment analysis (DEA). Interfaces 25, 60-73.
32. Toevs, A., 1992. Under what circumstances do bank mergers improve efficiency? Bank Structure and Competition, Federal Reserve Bank of Chicago, pp. 602-628.
33. Tulkens, H., 1993. On FDH efficiency analysis: Some methodological issues and applications to retail banking, courts, and urban transit. Journal of Productivity Analysis 4, 183-210.
34. Tulkens, H., Malnero, A., 1994. Nonparametric approaches to the assessment of the relative efficiency of bank branches, CORE Discussion Paper 9447, Belgium.
35. Vassiglou, M., Giokas, D., 1990. A study of the relative efficiency of bank branches: An application of data envelopment analysis. Journal of the Operational Research Society 41, 591-597.
36. Zardkoohi, A., Kolari, J., 1994. Branch office economies of scale and scope: Evidence from savings banks in Finland, Journal of Banking and Finance 18, 421-432.