Iosifidi, Maria and Panopoulou, Aikaterini and Tsoumas, Chris (2021) Mortgage Loan Demand and Banks’ Operational Efficiency. Journal of Financial Stability, 53. p. 100851. DOI https://doi.org/10.1016/j.jfs.2021.100851
Iosifidi, Maria and Panopoulou, Aikaterini and Tsoumas, Chris (2021) Mortgage Loan Demand and Banks’ Operational Efficiency. Journal of Financial Stability, 53. p. 100851. DOI https://doi.org/10.1016/j.jfs.2021.100851
Iosifidi, Maria and Panopoulou, Aikaterini and Tsoumas, Chris (2021) Mortgage Loan Demand and Banks’ Operational Efficiency. Journal of Financial Stability, 53. p. 100851. DOI https://doi.org/10.1016/j.jfs.2021.100851
Abstract
Using data for 6,740 U.S. banks from 1996 to 2016, we consider whether mortgage loan demand is a key determinant of banks’ cost efficiency and management quality. We estimate mortgage loan demand from loan-level applications at individual banks, and we estimate bank efficiency and management quality score from banks’ structural models. In line with theoretical considerations around economies of scale, our results show that loan amount demand improves cost efficiency, but the number of loan applications reduces cost efficiency. In contrast, mortgage loan demand has an economically less significant effect on management quality score. We also find that loan demand is an important factor in shaping banks’ loan quality, above and beyond operational efficiency.
Item Type: | Article |
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Uncontrolled Keywords: | Banking; Mortgage loan demand; Cost efficiency; Management quality |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 30 Mar 2021 10:48 |
Last Modified: | 16 May 2024 20:41 |
URI: | http://repository.essex.ac.uk/id/eprint/29763 |
Available files
Filename: JFS_panopoulou.pdf
Licence: Creative Commons: Attribution-Noncommercial-No Derivative Works 3.0