Evolution of bank efficiency in Brazil: A DEA approach

• Autor(a) principal: Staub, Roberta Blass
• Data de Publicação: 2010
• Outros Autores: Silva e Souza, Geraldo da, Tabak, Benjamin Miranda
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Institucional da UCB
• Texto Completo: http://twingo.ucb.br:8080/jspui/handle/10869/339; https://repositorio.ucb.br:9443/jspui/handle/123456789/7352
• topic: DEA; Bank efficiency; Emerging markets; Bank consolidation; Ownership

This paper investigates cost, technical and allocative efficiencies for Brazilian banks in the recent period (2000–2007). We use Data Envelopment Analysis (DEA) to compute efficiency scores. Brazilian banks were found to have low levels of economic (cost) efficiency compared to banks in Europe and in the US. For the period with high macroeconomic volatility (2000–2002) the economic inefficiency in Brazilian banks can be attributed mainly to technical inefficiency rather than allocative inefficiency. State-owned banks are significantly more cost efficient than foreign, private domestic and private with foreign participation. There is no evidence of differences in economic efficiency due to type of activity and bank size. These results may provide some useful guidance for financial regulators and bank managers.