Publication detail

Cost efficiency of European cooperative banks: Are small institutions predestined to fail?

Author(s): Mgr. Matěj Kuc ,
Type: Article in collection
Year: 2017
Number: 0
ISSN / ISBN: ISSN: 2198-7246
Published in: Springer Proceedings in Business and Economics
Publishing place:
Keywords: Cooperative banking; Cost efficiency; Economies of scale
JEL codes:
Suggested Citation:
Grants: GAUK 105815 (2015 - 2017) Banking fee and commission income – its determinants and impact on bank’s profitability and risk
Abstract: Aim of this paper is to make a literature review and also to empirically assess op-timal size of cooperative banks in European Union in terms of their cost efficien-cy. Theoretical explanations for possible efficiency advantages are brought for-ward and consequently they are compared with existing empirical literature. Fur-thermore, we created dataset of 283 banks from 15 European countries between years 2006 and 2013 to empirically investigate this problem on recent data. Using descriptive statistics, we found that bigger European cooperative banks are more efficient in terms of Cost-to-Income ratio than the smaller ones. These results seem to be stable in time and also in individual countries as was shown on analy-sis of sub-samples.

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