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Bank performance : a theoretical and empirical framework for the analysis of profitability, competition and efficiency / Jacob A. Bikker and Jaap W.B. Bos.

Lippincott Library HG1615 .B53 2008
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Format:
Book
Author/Creator:
Bikker, Jacob A., 1952-
Contributor:
Bos, Jaap W. B.
Series:
Routledge international studies in money and banking ; 48.
Routledge international studies in money and banking ; 48
Language:
English
Subjects (All):
Bank management.
Banks and banking.
Physical Description:
xviii, 154 pages : illustrations ; 24 cm.
Place of Publication:
London ; New York : Routledge, 2008.
Contents:
2 Production of the banking firm 6
Alternative explanations for bank performance 6
From economic rationality to production functions 9
From production functions to cost and profit functions 12
3 Regulation of the banking firm 16
Motivation for capital regulation of financial institutions 16
Basel I and II 17
Procyclicality of the regulatory regime 20
Part II Theoretical framework 23
4 Basic model of bank performance 25
Profit maximization 26
Basic model 28
5 Market power models 31
Iwata 31
Bresnahan 32
Panzar-Rosse 33
Structure-Conduct-Performance 34
Cournot model 35
The Stigler Approach 36
6 Efficiency of banks 38
X-Efficiency 38
Scale and scope economies 40
Efficiency hypothesis 41
7 Synthesis 44
Part III Trends in banking 47
8 Trends and the basic framework 49
Causes 49
Trends 51
Consequences 53
Synthesis 55
Part IV Empirical results 59
9 Data 61
Bank data sample 61
Variable list 64
10 The Bresnahan model 67
Theoretical structure of the Bresnahan model 67
Empirical equations for the deposit and loan markets 68
Estimation results for the market for deposit facilities 70
EU-wide results for deposit facility markets 71
Single-country results for deposit facility markets 73
Estimation results for loan markets 74
EU-wide results for loan markets 74
Single-country results results for loan markets 75
Earlier Applications of Bresnahan in the Literature 76
11 Panzar-Rosse model 77
Theoretical framework 77
Empirical P-R model 79
The impact of bank size 83
12 Structure-Conduct-Performance model 87
13 Cournot model 89
14 X-Efficiency 91
Cost efficiency 91
Profit efficiency 92
Efficiency hypothesis 92
15 Scale and scope economies 98
Scale economies 98
Scope economies 102
16 Synthesis: the measurement of competition and efficiency 107
Data on simple proxies and model-based measures of competition and efficiency 107
Interdependencies among measures of competition and efficiency 109
A balanced score-card approach to measuring competition 113
18 Research agenda 119
Appendix 1 Guide for instructors 121
Appendix 2 Programming code 135.
Notes:
Includes bibliographical references (pages [143]-150) and index.
ISBN:
9780415397667
0415397669
9780203030899
0203030893
OCLC:
182573564

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