Journal of Banking & Finance Vol. 27 No. 11 2003
The performance of universal banks: Evidence from Switzerland
Abstract
This paper examines the performance of Swiss banks from 1996 to 1999. Using a broad definition of bank output, we find evidence of large relative cost and profit inefficiencies in Swiss banks. A more narrow definition that focuses on only traditional activities leads to efficiency estimates that are even lower. We also find evidence of economies of scale for small and mid-size banks, but little evidence that significant scale economies remain for the very largest banks. Finally, evidence on scope economies is weak for the largest banks that are involved in a wide variety of financial activities. Taken together, these results suggest few obvious benefits from the trend toward larger, universal banks in Switzerland.
- DOI
- 10.1016/s0378-4266(02)00318-7
- Volume
- 27
- Issue
- 11
- Pages
- 2121-2150
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref