| Abstract: |
This paper proposes a framework for benchmarking European co-operative banks
and the rationalization of their operational activities. The analysis is based
on the Luenberger productivity indicator. A key advantage of this method is
that it allows for both input contraction and output expansion in determining
relative efficiencies and productivity changes. Benchmarks are provided for
improving the operations of those banks which perform worse than others.
Several interesting and useful managerial insights and implications arise from
the study. The general conclusion is that, between 1996 and 2003, productivity
increased for the majority of European co-operative banks analyzed. |