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Analyzing Banks’ Performance During The Recent Breakdowns. What Were The Main Drivers?

Author

Listed:
  • VINCENZO PACELLI

    (Ionian Department in “Legal and Economic Systems of the Mediterranean)

  • FRANCESCA PAMPURINI

    (��Department of Economics and Business Management Sciences, Catholic University of the Sacred Heart of Milan, Largo Gemelli 1, 20123 Milan, Italy)

  • ANNA GRAZIA QUARANTA

    (��Department of Economics and Law, University of Macerata, Via Crescimbeni 14, 62100 Macerata, Italy)

Abstract

We observe the main efficiency drivers of European Banking Groups after the burst of the Global Financial Crisis. This analysis is a live issue within the studies in the field of intermediation. The observed period (2010–2021) is emblematic of the complexity of the financial market in the last two decades. The efficiency levels derive from a stochastic frontier approach; a k-means cluster analysis distinguishes the units into three homogeneous groups, so that the main determinants of the higher level of efficiency can be identified. They are linked to a particular business model, specific managerial choices, costs rationalization and liquidity optimization.

Suggested Citation

  • Vincenzo Pacelli & Francesca Pampurini & Anna Grazia Quaranta, 2023. "Analyzing Banks’ Performance During The Recent Breakdowns. What Were The Main Drivers?," Journal of Financial Management, Markets and Institutions (JFMMI), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 1-16, December.
  • Handle: RePEc:wsi:jfmmix:v:11:y:2023:i:02:n:s2282717x23500081
    DOI: 10.1142/S2282717X23500081
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    More about this item

    Keywords

    Banking groups; stochastic frontier approach; cluster analysis; efficiency drivers; management;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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