This study aims to contribute the established literature by using Fourier flexible functional form and stochastic cost frontier methodologies estimate scale economies X‐inefficiencies for a large sample of European savings banks between 1989 1996. In their extensive review bank efficiency literature, Berger Humphrey note that volume studies has not matched USA there exists paucity cross‐country studies. Whereas are widespread positively related size, we find no evidence significant...

We investigate the factors influencing Non-Performing Loans (NPLs) in Italian banking sector from 2011 to 2017, a period marked by significant challenges. Using dynamic panel data methods and considering both bank-specific macroeconomic variables, our empirical analysis reveals complexity of NPL volumes Italy. Our findings highlight that better capitalised banks tend exhibit lower levels NPLs, indicating reduced incentives for engaging riskier practices. document an inverse relationship...

Abstract This paper investigates the relationship between size and growth for a sample of banks from France, Germany, Italy UK over period 1990 to 1996. Using several measures bank (total assets, equity value off balance sheet business), we test effects on growth, using models which incorporate influences previous type country origin. The results analysis suggest that Italy, small tend grow faster than larger banks. No is found Germany UK. suggests process increasing concentration in these...

W ILLIAMS J. and G ARDENER E. P. M. (2003) The efficiency of European regional banking, Reg. Studies 37 , 321-330. Financial deregulation may segment banking into pan-national tiers. Regional must finance productive investment to facilitate economic growth. Local banks are the appropriate financing vehicles because their specialist knowledge market risks conditions. Employing stochastic frontier analysis, in producing financial services is estimated along with determinants bank cost...

Abstract We employ the Luenberger productivity indicator to estimate growth and its decomposition into technical change efficiency components for savings banks sectors in 10 EU countries between 1996 2003. The requires less restrictive assumptions than standard nonparametric indexes, it allows assumption of profit maximization be made sample firms. average sector 2.78% per annum driven almost entirely by change. Whilst general results confirm earlier findings, this study is one earliest...

Abstract The Luenberger productivity indicator is employed to estimate and decompose change in a sample of cooperative banks operating 10 EU member states. An average annualised growth 2.59% reported between 1996 2003, though there heterogeneity rates across countries. Generally speaking, driven by technological change. However, southern European banking markets benefit as much from efficiency or catching‐up with industry best practice. results suggest that technology sharing arrangements...

Abstract We investigate the risk effects of bank acquisitions insurance companies and securities firms between 1991 2012 using a newly constructed dataset M&A deals. examine changes before after deal announcements by decomposing into systematic idiosyncratic components. Subsequently, we relationship diversification modelling determinants risks. find that combinations with yield higher risks than companies. Bank size is an important consistent determinant whereas not. Our results inform...

Savings banks are an important European banking sector. From their traditional retail roots of catering for the poorer social groups and providing a limited range specialist services, many savings today have evolved into full‐service universal that virtually indistinguishable from commercial bank competitors. Examines strategic environment, challenges different adaptive organizational models pursued by banks. recent survey case study evidence, finds banks’ strategies across Europe differ...