Size and Scale Economies in Japanese Cooperative Banking
35 Pages Posted: 22 Apr 2009
Date Written: April 22, 2009
Abstract
This paper examines the relationship between size and scale economies of cooperative banks in Japan (namely Shinkin and credit cooperatives). We use the translog cost-function methodology and intermediation approach coupled with a large set of both cross-sectional and panel data over the period 2003 to 2006. We find significant diseconomies of scale for both the full sample and sub-samples of small and large cooperative banks. It is of interest to note that larger cooperative banks were at cost disadvantage as compared to small ones throughout most of the period. Thus, bigger is not always better, at least in cost terms.
Keywords: Cooperative banks, Size, Scale economies, Shinkin and credit cooperatives, Translog-cost function
JEL Classification: D21, D24, G21, L23, N25
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Efficiency of Financial Institutions: International Survey and Directions for Future Research
By Allen N. Berger and David B. Humphrey
-
Inside the Black Box: What Explains Differences in the Efficiencies of Financial Institutions?
By Allen N. Berger and Loretta J. Mester
-
Entry Restrictions, Industry Evolution, And Dynamic Efficiency: Evidence from Commercial Banking
By Jith Jayaratne and Philip E. Strahan
-
The Effects of Megamergers on Efficiency and Prices: Evidence from a Bank Profit Function
By Jalal D. Akhavein, Allen N. Berger, ...
-
Problem Loans and Cost Efficiency in Commercial Banks
By Allen N. Berger and Robert Deyoung
-
The Effects of Geographic Expansion on Bank Efficiency
By Allen N. Berger and Robert Deyoung
-
Organizational Form and Efficiency: An Analysis of Stock and Mutual Property-Liability Insurers
By J David Cummins, Mary A. Weiss, ...
-
Cost and Profit Dynamics in Financial Conglomerates and Universal Banks in Europe
-
By Paul W. Bauer, Allen N. Berger, ...
-
By Allen N. Berger and Loretta J. Mester