Abstract
This chapter explores European bank efficiency and performance. First, the authors provide an overview of the key estimation methods for efficiency and discuss selected applications to the European banking sector. Second, they apply stochastic frontier analysis to investigate the extent to which the reallocation of supervisory powers is associated with efficiency differences between European banks. In doing so, the discussion focuses particularly on whether direct supervision by the Single Supervisory Mechanism (SSM) as opposed to national competent authority (NCA) is related to cost and profit efficiency.
Original language | English |
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Title of host publication | The Palgrave Handbook of European Banking |
Editors | Thorsten Beck, Barbara Casu |
Publisher | Palgrave Macmillan |
Pages | 257-292 |
ISBN (Electronic) | 978-1-137-52144-6 |
ISBN (Print) | 978-1-137-52143-9 |
DOIs | |
Publication status | Published - 2016 |