Efficiency in Spanish banking: A multistakeholder approach analysis

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San-José, Leire, Retolaza, Jose Luis and Pruñonosae, Jose Torres (2014) Efficiency in Spanish banking: A multistakeholder approach analysis. Journal of International Financial Markets, Institutions & Money, 32. pp. 240-255. ISSN 1042-4431

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Official URL: http://dx.doi.org/10.1016/j.intfin.2014.06.005

DOI: 10.1016/j.intfin.2014.06.005

Abstract

Searching for greater inter efficiency has been used as a reason tomodify the Spanish banking system since 2009. This paper aimsto contribute to quantify the magnitude of efficiency, but not onlythe economic one, but also social and overall efficiency from 2000to 2011. The case of Spain – compared to other banking systems –provides unique information regarding the stakeholder governancebanking literature because over the last century savings banks havebecome rooted in the Spanish culture. The results – confirmed bya two-stage frontiers analysis, a DEA and a model combined withbootstrapped tests – indicate that Spanish savings banks are notless efficient globally than banks and are more efficient socially.Moreover, our results – with potentially important implications –encourage the participation of stakeholders in banking systems andunderline the importance of attaining long-term efficiency gains tosupport financial stability objectives.

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