An assessment of Portuguese banks’ efficiency and productivity towards euro area participation

What is the impact of problem loans on Japanese bank productivity growth?

“…Boucinha et al. () also find a significant contribution of returns to scale to increased productivity growth of Portuguese banks. Feng and Serletis () find a moderate positive effect of returns to scale on productivity growth of large US banks, on average about 0.44%.…”

“…Boucinha et al. () also report a desirable impact of equity in lessening costs for Portuguese banks during 1992–2006. In contrast, this may not apply for Regional Banks.…”

“…Note that City Banks also received support from public capital during the restructuring process, thus benefiting from the rescue capital. These negative elasticities could also be interpreted as how much banks are willing to pay for equity as it would result in cost saving (Boucinha et al., ). Boucinha et al.…”

“…Estimating a cost function on its own by using stochastic frontier analysis, Boucinha et al. () obtain the estimated parameters and compute total factor productivity change for Portuguese banks. Their results suggest that technological progress was the main driver of total factor productivity change from 1992 to 2006.…”

“…In terms of bank efficiency and productivity, the outbreak of the global financial crisis has driven a surge of banking studies (Matousek, Rughoo, Sarantis, & Assaf, ; Tsionas, Assaf, & Matousek, ), unfolding the paramount importance of financial intermediaries within the economic system. In terms of productivity growth, evidence is rather limited with studies that apply parametric methods to evaluate bank productivity (Boucinha, Ribeiro, & Weyman‐Jones, ; Feng & Serletis, ; Feng & Zhang, , ). As indicated in a review of non‐parametric productivity applied in banking by Fethi and Pasiouras (), the majority of studies adopt a non‐parametric approach (Fukuyama & Weber, , ; Liu & Tone, ).…”