Obelix vs. Asterix: Size of U.S. Commercial Banks and Its Regulatory Challenge
2014/07/01
研討會日期 : 2014-07-01
時間 : 14:30
主講人 : Professor Subal C. Kumbhakar
地點 : Conference Room C103
演講者簡介 : Professor Kumbhakar received his Ph.D. in Economics from University of Southern California, Los Angeles in 1986. He is currently a University Distinguished Professor of Economics in State University of New York at Binghamton. His main area of research is applied microeconomics with a focus on estimation of efficiency in production.
演講摘要 : After the recent U.S. Financial Crisis, many academics, government officials, policy makers, and politicians favored regulations to limit the size of the biggest U.S. banking organizations. However, recent regulatory reforms fail to address this issue. A common rationale for letting banks grow even further is that they may enjoy substantial scale economies and higher productivity. Using new nonparametric measures of scale economies and TFP growth for U.S. commercial banks, this paper shows that, except during 2007 and 2008, even some of the biggest banks exhibit substantial economies of scale which contribute positively and significantly to TFP growth. Thus, left unchecked, some big banks have strong economic incentives to keep growing making size-related regulatory reforms unlikely to succeed.
