Financial and Operative Cost EfficiencySpanish Savings Banks in Pre-Crisis Period

  1. María Concepción Pérez-Cárceles 1
  2. Juan Cándido Gómez-Gallego 1
  3. Juan Gómez-García 2
  1. 1 Universidad Católica San Antonio
    info

    Universidad Católica San Antonio

    Murcia, España

    ROR https://ror.org/05b1rsv17

  2. 2 Universidad de Murcia
    info

    Universidad de Murcia

    Murcia, España

    ROR https://ror.org/03p3aeb86

Revista:
Estudios de economía aplicada

ISSN: 1133-3197,  1697-5731

Any de publicació: 2015

Títol de l'exemplar: El futuro de los métodos cuantitativos en economía aplicada: la herencia de Klein

Volum: 33

Número: 2

Pàgines: 633-648

Tipus: Article

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Altres publicacions en: Estudios de economía aplicada

Resum

With the aim of knowing if a relationship exists between cost inefficiency and instability of financial entities before the 2008 financial crisis, a stochastic frontier approach is applied to Spanish savings banks in the period (2002-2007). Moreover, translog financial and operative cost functions are estimated by Maximum-Likelihood to determine the influence of each field of cost efficiency on financial instability. The results show that biggest inefficiencies are associated with operative cost, so management policies should be specially oriented to reduction of physical capital. On the other hand, the financial covariates show that the most effective strategies in this field consist of looking for advantages in deposits market and increases in resources and in quality of assets through provisions.

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Fuente de los datos: Dialnet