Cost efficiency characteristics of British retail banks

J. K. Ashton*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


In this article the cost efficiency characteristics of the British retail-banking sector are investigated. Distribution-free cost efficiency, economies of scale, economies of scope and cost complementarities are all measured. The study employs a one way fixed effects model with a translog specification of productive technology. Both 'production' and 'intermediation' models of bank production are employed and contrasted. Overall, increasing economies of scale and a low level of dispersion of cost efficiency are observed in this most important commercial sector.

Original languageEnglish
Pages (from-to)159-174
Number of pages16
JournalService industries journal
Issue number2
Publication statusPublished - 2001

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