The impact of non-traditional activities on the estimation of bank efficiency: International evidence

Lozano‐Vivas, Ana; Pasiouras, Fotios

doi:10.1016/j.jbankfin.2010.01.006

Cited by 237 publications

(112 citation statements)

References 49 publications

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“…This is a proxy of banking activity, used in numerous studies as an indicator of financial development (Levine, 1997;Beck et al, 2004;Shandre and James, 2004;Abu-Bader and Abu-Qarn, 2008). Financial development could have a positive impact on cost efficiency (Pasiouras, 2008;Lozano-Vivas and Pasiouras, 2010). However, Demirguc-Kunt and Maksimovic (2002) argue that banks with a primary role in financing firms might undertake high loan default risk during a period of financial distress.…”

Section: Data and Variablesmentioning

confidence: 99%

What drives investment bank performance? The role of risk, liquidity and fees prior to and during the crisis

Mamatzakis

Bermpei

2014

International Review of Financial Analysis

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This paper examines factors that affect the performance of investment banks in the G7 and Switzerland. In particular, we focus on the role of risk, liquidity and investment banking fees. Panel analysis shows that those variables significantly impact upon performance as derived from stochastic frontier analysis (SFA). Given our sample also comprises the financial crisis, we further test for regimes switches using dynamic panel threshold analysis. Results show different underlying regimes, in particular over the financial crisis. In addition, a strong positive effect of Z-Score on performance for banks in the regime of low default risk is reported, whilst fee-income ratio has also a positive impact for banks with low level of fees. On the other hand, liquidity exerts a negative impact. Notably, there is a clear trend of mobility of banks across the two identified threshold regimes with regards to risk a year before the financial crisis. Our results provide evidence that recent regulation reforms regarding capital adequacy and liquidity requirements are on the right track and could enhance performance.

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Section: Data and Variablesmentioning

confidence: 99%

What drives investment bank performance? The role of risk, liquidity and fees prior to and during the crisis

Mamatzakis

Bermpei

2014

International Review of Financial Analysis

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“…The cost of loanable funds is calculated as the ratio of interest expenses to total assets, the cost of physical capital is calculated by dividing overhead expenses (other than personnel expenses) by the book value of the banks' fixed assets and the cost of labour is calculated as the ratio between the personnel expenses and the total assets. Equity is introduced among the inputs as researchers suggest to control for the differences in risk preferences among commercial banks (Berger and Mester (1997) and Lozano-Vivas et al (2010)). Typically, equity capital is treated as a quasifixed input.…”

Section: The Empirical Methodologymentioning

confidence: 99%

“…The original data are in British pounds and are expressed in 2001 prices. As it is usually done in this literature, we deflated the data using the GDP deflators (see for instance Lozano-Vivas and Pasiouras, 2010). Finally, all the variables were winsorized at the 5 th and the 95 th percentiles for every year they were observed 5 .…”

Section: Datamentioning

confidence: 99%

Trademarking activities and total factor productivity: Some evidence for British commercial banks using a metafrontier approach

Duygun

Sena

Shaban

2016

Journal of Banking & Finance

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In this paper, we compute a non-parametric Metafrontier Malmquist index to evaluate the Total Factor Productivity (TFP) change among UK-based trademarking and non-trademarking commercial banks between 2005 and 2013. The use of the metafrontier approach allows us to: a) identify the drivers of TFP growth for each group of banks, b) compare the TFP growth of each group to the TFP growth experienced by the whole industry, and c) assess the extent to which the former catches up with the latter measured along the metafrontier. Our results suggest that TFP has been increasing among trademarking banks up to the onset of the financial crisis but this process has since reversed. The catch-up indexes suggest that both groups of banks were catching up with the metafrontier up to the financial crisis although the drivers of this process differed between the two groups. After the financial crisis, improvements in technology have been driven by a small number of commercial banks i.e. the non-trademarking banks. These results suggest that a large section of the commercial banking sector has not been able to overcome the effects of the financial crisis.

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“…Lozano-Vivas and Pasiouras (2008) conducted a study on a sample of 87 countries in transition, and demonstrate a statistically significant and positive impact of non-traditional banking activities on the performance of banks in different countries measured by their efficiency cost.…”

Section: The Determinants Of Bank Performance: a Literature Reviewmentioning

confidence: 98%

The Determinants of the Tunisian Banking Performance: A Panel Data Analysis

Ayadi¹,

Ellouze²

2014

IJEF

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This paper aims to empirically analyze the determinants of the Tunisian banking performance for the period 2003-2012. Our findings reveal that the increase of the capitalization's level of these banks results in superior performance, quotation in stock exchange and size positively affect the performance of the studied Tunisian banks, in addition private banks outperform their public counterparts. And finally, the performance of Tunisian banks was negatively affected by the revolution of 14 January 2011.

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The impact of non-traditional activities on the estimation of bank efficiency: International evidence

Cited by 237 publications

References 49 publications

What drives investment bank performance? The role of risk, liquidity and fees prior to and during the crisis

What drives investment bank performance? The role of risk, liquidity and fees prior to and during the crisis

Trademarking activities and total factor productivity: Some evidence for British commercial banks using a metafrontier approach

The Determinants of the Tunisian Banking Performance: A Panel Data Analysis

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