Determinants of bank efficiency: The case of Brazil

  title={Determinants of bank efficiency: The case of Brazil},
  author={Patricia Langsch Tecles and Benjamin Miranda Tabak},
  journal={European Journal of Operational Research},
This paper analyzes the efficiency of the Brazilian banking sector over the post-privatization period of 2000-2007. We employ a Bayesian stochastic frontier approach, which provides exact efficiency estimates and confidence intervals and thus, allows an accurate comparison across institutions and bank groups. The results suggest that large banks are the most cost and profit efficient, supporting the concentration process observed in recent years. Foreign banks have achieved a good performance… CONTINUE READING
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