This paper surveys 130 studies that apply frontier efficiency
analysis to financial institutions in 21 countries. The primary
goals are to summarize and critically review empirical estimates of
financial institution efficiency and to attempt to arrive at a
consensus view. We find that the various efficiency methods do not
necessarily yield consistent results, and we suggest some ways that
these methods might be improved to bring about findings that are
more consistent, accurate, and useful. Secondary goals are to
address the implications of efficiency results for financial
institutions in the areas of government policy, research, and
managerial performance. Areas needing additional research are also
outlined.
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