Cost Efficiency Analysis in French Banking Sector

By using the stochastic frontier approach, this study evaluates the cost efficiency of 122 French commercial banks over the period 2005 to 2014. The main objective is not only to inherit previous studies on efficiency analysis of French banks, but also extend to measure the cost efficiency level of...

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Main Author: ZHANG, SHIJIE
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2016
Subjects:
Online Access:https://eprints.nottingham.ac.uk/36677/
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author ZHANG, SHIJIE
author_facet ZHANG, SHIJIE
author_sort ZHANG, SHIJIE
building Nottingham Research Data Repository
collection Online Access
description By using the stochastic frontier approach, this study evaluates the cost efficiency of 122 French commercial banks over the period 2005 to 2014. The main objective is not only to inherit previous studies on efficiency analysis of French banks, but also extend to measure the cost efficiency level of French banking sector after experiencing a series of financial events (2005-2014). On average, the cost efficiency score ranges from 76.55% to 67.88%, showing a decreasing tendency over time. Meanwhile, this paper also investigates the determinants of cost efficiency level by using Tobit regression model. The findings suggest that the GDP growth can improve bank cost efficiency while inflation rate has negative impact on cost efficiency of French banks. For international factors, bank size, asset quality, credit risk and profitability significantly influence the cost efficiency level of banks in France.
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spelling nottingham-366772017-10-19T17:03:11Z https://eprints.nottingham.ac.uk/36677/ Cost Efficiency Analysis in French Banking Sector ZHANG, SHIJIE By using the stochastic frontier approach, this study evaluates the cost efficiency of 122 French commercial banks over the period 2005 to 2014. The main objective is not only to inherit previous studies on efficiency analysis of French banks, but also extend to measure the cost efficiency level of French banking sector after experiencing a series of financial events (2005-2014). On average, the cost efficiency score ranges from 76.55% to 67.88%, showing a decreasing tendency over time. Meanwhile, this paper also investigates the determinants of cost efficiency level by using Tobit regression model. The findings suggest that the GDP growth can improve bank cost efficiency while inflation rate has negative impact on cost efficiency of French banks. For international factors, bank size, asset quality, credit risk and profitability significantly influence the cost efficiency level of banks in France. 2016-09-14 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36677/1/final%20paper__shijie%20zhang.pdf ZHANG, SHIJIE (2016) Cost Efficiency Analysis in French Banking Sector. [Dissertation (University of Nottingham only)] cost efficiency stochastic frontier analysis French banks
spellingShingle cost efficiency
stochastic frontier analysis
French banks
ZHANG, SHIJIE
Cost Efficiency Analysis in French Banking Sector
title Cost Efficiency Analysis in French Banking Sector
title_full Cost Efficiency Analysis in French Banking Sector
title_fullStr Cost Efficiency Analysis in French Banking Sector
title_full_unstemmed Cost Efficiency Analysis in French Banking Sector
title_short Cost Efficiency Analysis in French Banking Sector
title_sort cost efficiency analysis in french banking sector
topic cost efficiency
stochastic frontier analysis
French banks
url https://eprints.nottingham.ac.uk/36677/