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The Impact Of De-Regulamentation On The Brazilian Banking Industry: A Production Metafrontier Approach

Author

Listed:
  • Luiz Chabalgoity
  • Emerson Marinho
  • Mauricio Benegas
  • Paulo de M. Jorge Neto

Abstract

This paper analyzes the impact after the entry and the increase in the capital participation of foreign banks in the Brazilian financial institutions. In this sense, taking into account three sub-sets of banks by controlling capital origin - domestic privates, foreigner and public-, an analysis was carried out to find out whether there were technical efficiency and productivity gains in Brazil' banking industry. Therefore, a production frontier was built using the Data Envelopment Analysis (DEA) which allows for the calculation of technical efficiency. Next, performing one of these measures, Malmquist's total productivity index is calculated. The results showed that the technical efficiency of the Brazilian banking industry has not evolved as must as it has been expected, although a total productivity increase has actually occurred, arising only from the technological progress. The foreign banks earned the most productivity gains followed by the domestic private banks. The technological leadership (test), proposed by Marinho and Benegas (2002), showed that the domestic private banks determined the industry's technological pattern.

Suggested Citation

  • Luiz Chabalgoity & Emerson Marinho & Mauricio Benegas & Paulo de M. Jorge Neto, 2005. "The Impact Of De-Regulamentation On The Brazilian Banking Industry: A Production Metafrontier Approach," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 093, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    • Handle: RePEc:anp:en2005:093
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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