Journal Article

Assessing the impact of regulation on bank cost efficiency


Abstract: The author finds that the bank production process was significantly distorted during a period typically associated with heavy industry regulation. As deregulation occurred, banks fully exploited the cost advantages associated with size and reaped significant gains from technological change. Efficiency significantly improved with deregulation.

Keywords: Banks and banking - Costs; Bank supervision;

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Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Economic Perspectives

Publication Date: 1998

Volume: 22

Issue: Q II

Pages: 21-32