European Banks Boost Efficiency, Improving Financial Stability for Millions
The study looked at European banks from 1996 to 2003 to see how efficient they were in using resources. They found that most banks were around 80% efficient in their operations and 75% efficient in how they allocated resources. Overall, the banks were getting better at being efficient over time. The study also showed that models focusing only on technical efficiency tended to overestimate it.