A comparative study of the cost efficiency of Italian bank conglomerates
Abstract
Outlines previous research on the efficiency of the Italian banking system, describes the structure of Italian banking groups and uses parametric (stochastic cost frontier) and non‐parametric (data envelopment analysis) approaches to assess the efficiency of Italian bank conglomerates in 1995 compared with the parent companies and subsidiearies. Explains the methodology and presents the results, which suggest that parent companies and subsidiaries are more efficient than groups and that efficiency is not related to size. Analyses efficiencies of scale and scope to show that bank groups gain more economies of scope than parents or subsidiaries; but finds mixed results for economies of scale.
Keywords
Citation
Casu, B. and Girardone, C. (2002), "A comparative study of the cost efficiency of Italian bank conglomerates", Managerial Finance, Vol. 28 No. 9, pp. 3-23. https://doi.org/10.1108/03074350210768031
Publisher
:MCB UP Ltd
Copyright © 2002, MCB UP Limited