Working Paper
Efficiency and productivity change in the U.S. commercial banking industry: a comparison of the 1980s and 1990s
Abstract: The authors investigate efficiency and productivity growth of the U.S. banking industry over the latter part of the 1980s and first part of the 1990s using comprehensive data on U.S. commercial banks. Cost efficiency decreased slightly between the 1980s and 1990s, and large banks showed a sizable decline in profit efficiency. Total predicted production costs increased over both the 1980s and 1990s, reflecting cost productivity declines. Changes in business conditions led to cost declines over both periods. Total predicted profits increased in the 1980s and 1990s, with the entire change reflecting increased profit productivity. Changing business conditions led to small declines in profits.
Keywords: Banks and banking; Productivity;
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File(s): File format is application/pdf https://www.philadelphiafed.org/-/media/frbp/assets/working-papers/1997/wp97-5.pdf
Authors
Bibliographic Information
Provider: Federal Reserve Bank of Philadelphia
Part of Series: Working Papers
Publication Date: 1997
Number: 97-5