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Production economies of small depository institutions in the post-FIRREA era: evidence from cooperative banks

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  • Seyed Mehdian
  • Rasoul Rezvanian

Abstract

To evaluate the effects of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989 on the cost behaviour of thrift institutions, this study examines the economies of scale and scope of cooperative banks for the years 1992-94. The findings provide evidence of economies of scale and scope over the period under study. In addition, the results suggest the presence of product-specific economies of scale and scope with respect to a few of the products included in the portfolios of the samples. Some policy implications are drawn based on the findings.

Suggested Citation

  • Seyed Mehdian & Rasoul Rezvanian, 1998. "Production economies of small depository institutions in the post-FIRREA era: evidence from cooperative banks," Applied Economics, Taylor & Francis Journals, vol. 30(3), pages 427-433.
    • Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:427-433
    DOI: 10.1080/000368498325949
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    References listed on IDEAS

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    Cited by:

    1. Mr. Jong-Kun Lee & Mr. Biaggio Bossone, 2002. "In Finance, Size Matters," IMF Working Papers 2002/113, International Monetary Fund.
    2. Rezvanian, Rasoul & Mehdian, Seyed, 2002. "An examination of cost structure and production performance of commercial banks in Singapore," Journal of Banking & Finance, Elsevier, vol. 26(1), pages 79-98, January.
    3. Nicholas Apergis & Anthony Rezitis, 2004. "Cost structure, technological change, and productivity growth in the greek banking sector," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 10(1), pages 1-15, February.
    4. Derek C. Jones & Panu Kalmi, 2012. "Economies of Scale Versus Participation: a Co-operative Dilemma?," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 1(1), pages 37-64, December.

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