Journal of Banking & Finance Vol. 31 No. 7 2007
Is there a single frontier in a single European banking market?
open access
Abstract
This paper attempts to estimate comparable efficiency scores for European banks operating in the Single Market in the EU. Using a data set of more than 5000 large commercial banks from all major European banking markets over the period 1993–2004, the application of meta-frontiers enables us to assess the existence of a single and integrated European banking market. We find evidence in favor of a single European banking market characterized by cost and profit meta-frontiers. However, compared to the meta-frontier estimations, pooled frontier estimations tend to underestimate efficiency levels and correlate poorly with country-specific frontier efficiency ranks.
- DOI
- 10.1016/j.jbankfin.2006.12.004
- Volume
- 31
- Issue
- 7
- Pages
- 2081-2102
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib