Bank branches efficiency under management and regulatory constraints Eficiência nas agências bancárias sob restrições gerenciais e regulatórias Eficiencia en sucursales bancarias bajo restricciones gerenciales y regulatorias

FERRO, GUSTAVO; LEMA, DANIEL; SCHIFFRER, FRANCISCO

Estudios Gerenciales

Universidad Icesi

Año: 2019 vol. 35 p. 122 - 134

0123-5923

The main purpose of this paper is to assess the cost-efficiency of Banco Ciudad de Buenos Aires´s bank branches using a Stochastic Frontier Analysis (SFA). Owing to the results, management can decide on a new branching dimension. Also, if some regulatory or managerial limits could be lifted, such as the closure or opening of new branches without central bank authorization, or redundancy staff reduction, the results could be important for management. We identify best and worst behaved branches. The more cost-efficient branches and the least cost-efficient ones differ in their size and input mix. Nonetheless, they present a similar output mix.