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On the Relationship Between Competition and Efficiency in the EU Banking Sectors

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Weill, L. On the Relationship Between Competition and Efficiency in the EU Banking Sectors. Credit and Capital Markets – Kredit und Kapital, 37(3), 329-352. https://doi.org/10.3790/ccm.37.3.329
Weill, Laurent "On the Relationship Between Competition and Efficiency in the EU Banking Sectors" Credit and Capital Markets – Kredit und Kapital 37.3, 2004, 329-352. https://doi.org/10.3790/ccm.37.3.329
Weill, Laurent (2004): On the Relationship Between Competition and Efficiency in the EU Banking Sectors, in: Credit and Capital Markets – Kredit und Kapital, vol. 37, iss. 3, 329-352, [online] https://doi.org/10.3790/ccm.37.3.329

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On the Relationship Between Competition and Efficiency in the EU Banking Sectors

Weill, Laurent

Credit and Capital Markets – Kredit und Kapital, Vol. 37 (2004), Iss. 3 : pp. 329–352

4 Citations (CrossRef)

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Laurent Weill, Strasbourg

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References

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Abstract

Evidence is scarce regarding the impact of competition on efficiency in banking, even if it represents a very relevant issue to assess the benefits of a heightened banking competition. This work investigates the relationship between competition and efficiency in banking on a sample of 12 EU countries during the period 1994- 1999. Competition is measured by the Rosse-Panzar H-Statistic, while efficiency is estimated with stochastic frontier approach. We provide support to a negative relationship between competition and efficiency in banking, which does not then corroborate the intuitive positive influence of competition on efficiency. (JEL G21, L12)