In this paper we investigate the efficiency differentials among Italian local banks situated across the Italian territory as well as the effect of local environmental factors on their performances. We assess technical and cost efficiency modelling banking production set through the “asset approach” and using DEA assuming variable returns to scale. The data are taken from ABI over the 1994 - 2008 period. Including in the production set local environmental factors measured at the Travel-to-Work Area level, above all the employment rate and value added per worker, basically erases the efficiency gap between Northern and Southern banks. Hence, there do not seem to exist compelling reasons to overthrow the relationship-banking system currently characterising much of local banking in Italy.

Banking efficiency, environmental factors and economic development: Some estimates on micro data

BARRA, CRISTIAN
2011

Abstract

In this paper we investigate the efficiency differentials among Italian local banks situated across the Italian territory as well as the effect of local environmental factors on their performances. We assess technical and cost efficiency modelling banking production set through the “asset approach” and using DEA assuming variable returns to scale. The data are taken from ABI over the 1994 - 2008 period. Including in the production set local environmental factors measured at the Travel-to-Work Area level, above all the employment rate and value added per worker, basically erases the efficiency gap between Northern and Southern banks. Hence, there do not seem to exist compelling reasons to overthrow the relationship-banking system currently characterising much of local banking in Italy.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11386/4626058
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