The efficiency of bank branches

Berger, Allen N.; Leusner, John H.; Mingo, John J.

doi:10.1016/s0304-3932(97)00035-4

Cited by 267 publications

(130 citation statements)

References 30 publications

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“…Operating in more states is associated with higher per-branch deposit volumes, while the opposite is true at the MSA level. Higher network density in local markets is associated with lower deposits-per-branch, a finding consistent with the "over-branching" result in Berger et al (1997). Finally, the coefficient on the variable reflecting the share of supermarket (in-store) branches in the network is consistently negative and statistically significant, most likely reflecting the smaller scale of in-store branches as compared to standalone branches.…”

supporting

confidence: 61%

“…This research examines the impact of branch banking by assessing the cost efficiency of individual bank branches held within a branch network. In general, these studies have found increasing returns to scale for individual bank branches (see, for instance, Athanassopoulos 1998, Berger et al 1997, and Zardkoohi and Kolari 1994, and the references therein). These findings are consistent with the idea that banks "over branch" in the sense that the individual branches are smaller than would be justified purely on the grounds of cost efficiency.…”

mentioning

confidence: 99%

“…These findings are consistent with the idea that banks "over branch" in the sense that the individual branches are smaller than would be justified purely on the grounds of cost efficiency. Berger et al (1997) argue that this apparent inefficiency may relate to the desire by banking organizations to provide convenience to customers, suggesting that while large branch networks may be inefficient from the perspective of minimizing costs, they may be effective at generating revenue.…”

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confidence: 99%

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The impact of network size on bank branch performance

Hirtle

2007

Journal of Banking & Finance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractDespite recent innovations that might have reduced banks' reliance on brick-and-mortar branches for distributing retail financial services, the number of U.S. bank branches has continued to increase steadily over time. Further, an increasing percentage of these branches are held by banks with large branch networks. This paper assesses the implications of these developments by examining a series of simple branch performance measures and asking how these measures vary, on average, across institutions with different branch network sizes.The key findings are that banks with 100 to 500 branches ("mid-sized networks") had lower bank-average deposits per branch and roughly equal volumes of small business loans per branch, but no reduction in net deposit costs, relative to banks with larger branch networks. When compared to banks with 100 or fewer branches, mid-sized branch networks had lower bank-average deposits and small business loan volume per branch, but had lower net deposit costs. The analysis shows no systematic relationship between branch network size and overall institutional profitability. The results imply that mid-sized branch networks may be at a competitive disadvantage, especially relative to the very largest branch networks.

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confidence: 61%

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confidence: 99%

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The impact of network size on bank branch performance

Hirtle

2007

Journal of Banking & Finance

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“…Many studies in bank efficiency use translog function to represent technology of production. However, Mithell and Onvural (1996), Berger, Leusner, and Mingo (1997) and Altunbas, Evans, andMolyneux (2001), Vennet (2002), Carbo, Gardener and Williams (2002) noted that augmented translog function, or fourier flexible (FF) form offers better approximation of the bank's unknown functional form. In summary, they concluded that adding trigonometrical terms to translog function to form flexible function is very effective to tackle down the problem of unknown multivariate function without misspecification.…”

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confidence: 99%

Cost efficiency, economies of scale, technological progress and productivity in Indonesian banks

Margono¹,

Sharma

Melvin

2010

Journal of Asian Economics

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This study estimates cost efficiency, scale economies, technological progress and productivity growth for Indonesian banks over the period 1993-2000. Overall the cost efficiency of all banks during this period was 69.82%. However, on average the efficiency of banks prior to the Asian crisis and after the Asian crisis were 79.67% and 53.40% respectively. Moreover, the results also indicate that private-owned banks and joint venture/foreign banks were more efficient than public-owned banks. Furthermore, as expected large banks tend to be more efficient as compared to smaller banks. Total factor productivity growth for Indonesian banks over the period 1993-2000 was -3.14%. However, before the Asian crisis, Indonesian banks productivity decreased by 1.48%, while after the crisis it decreased by 6.45%.JEL Classification: G21.

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“…ziskovej) funkcie sa začal výraznejšie presadzovať v odbornej literatúre už v priebehu 90-tych rokov (Kaparakis, Miller, Noulas, 1994;Lang, Welzel, 1996;Berger, Leusner, Mingo, 1997 ;Berger, Mester, 1997;Adams, Berger, Sickles, 1999). Uvedení autori uplatňujú pri skúmaní nákladovej (ziskovej) efektivity tzv.…”

Section: Prehľad Literatúryunclassified

Influence of Different Ownership Forms on Efficiency of Czech and Slovak Banks: Stochastic Frontier Approach

Baruník¹,

Soták²

2010

Politicka ekonomie

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, Ústav teorie informace a automatizace AV ČR, v. v. i., Institut ekonomických studií FSV UK, Praha; Branislav Soták, Institut ekonomických studií FSV UK, Praha* ÚvodReformu fi nančného sektoru a privatizáciu bánk v tranzitívnych krajinách popisuje množstvo empirických prác, napr. Bonin et al. (1998), Anderson et al. (1998), Khaled et al. (2003). Tieto práce sa však zaoberajú popisom procesu transformácie bánk v tranzitívnych ekonomikách obecne. V stredoeurópskom regióne je v spomínaných prácach venovaný priestor ekonomikám Poľska, Maďarska a Českej republiky, transformácia bánk v Slovenskej republike je v literatúre opomínaná.Z domácich prác je najvýznamnejším uceleným popisom transformačného procesu bankového systému v SR práca Marcinčina a Beblavého (2000). Dopĺňa príležitostné čiastkové štúdie Národnej Banky Slovenska (napr. Tkáčová, 2001;Preisinger, 2001) a Slovenskej Akadémie Vied (napr. Hlavatý, 2001). Všetky práce domácich autorov sú však len popisom reštrukturalizácie a privatizácie bánk, prípadne dielčích problé-mov bankového sektoru v SR. V odbornej literatúre chýba práca, ktorá by pomocou štandardných ekonometrických metód skúmala problematiku empirickým testovaním reálnych dát a tým doplnila existujúcu literatúru o analýzu skutočných vplyvov rôznych foriem vlastníctva bánk na výkonnosť bankového sektoru. Práve vyplnenie tejto medzery je ambíciou autorov tejto práce.V článku postupne predstavíme prehľad doterajšej literatúry, podrobne popíšeme metodológiu, testované dáta a konečne najzaujímavejšiu časť článku, výsledky empirického výskumu. Na vzorke slovenských a českých bánk budeme skúmať dopady rôznych foriem vlastníctva na nákladovú efektivitu bánk pomocou analýzy stochastických hraníc. Je nutné zdôrazniť, že práca sa zaoberá pohľadom na danú problematiku z hľadiska údajov pred vznikom fi nančnej krízy 2008, teda v období mimoriadne úspešného vývoja bankového sektoru. Prehľad literatúryV popisnej rovine je už v súčasnosti dostupných množstvo prác, ktoré sa zaoberajú reformou fi nančného prostredia v tranzitívnych ekonomikách a privatizáciou bánk ako jej podstatnou súčasťou, napr.

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The efficiency of bank branches

Cited by 267 publications

References 30 publications

The impact of network size on bank branch performance

The impact of network size on bank branch performance

Cost efficiency, economies of scale, technological progress and productivity in Indonesian banks

Influence of Different Ownership Forms on Efficiency of Czech and Slovak Banks: Stochastic Frontier Approach

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