Heterogeneity in Banking Efficiency
What is it about?
This study reviews the empirical literature on banking efficiency by conducting a meta-regression analysis. The meta-dataset consists of 1661 observations retrieved from 120 papers published over the period 2000–2014. The results are fourfold. First, parametric methods always yield lower levels of banking efficiency than nonparametric studies. Second, banking efficiency is higher in studies using the value-added approach rather than the intermediation method. Third, efficiency scores also depend on the journal’s ranking and on the number of observations and variables used in the primary papers. Finally, regulation matters.
The following have contributed to this page: Dr Graziella Bonanno
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