US and Canada Banks Show Similar Efficiencies Despite Structural Differences
The article compares the efficiency of banks in the US and Canada from 2008 to 2017. They used two methods, Stochastic Frontier Analysis and Data Envelopment Analysis, to measure cost and profit efficiency. The results show that the two countries' banks have similar efficiencies, but the methods used produced different results. Overall, there is a need for more research to improve how bank efficiencies are measured.