Big banks in Argentina more efficient, smaller ones struggle to compete
The article analyzes the efficiency of commercial banks in Argentina by studying their size and product mix. By using data from their balance sheets, the researchers found that larger banks are more efficient than medium and small ones. They also discovered that some types of specialization can be more cost-effective than producing multiple products. Overall, the banking system in Argentina operates with increasing returns to scale, but there is no evidence of a natural monopoly in the system.