Bank scope economies have been derived from either the standard or generalized (Box-Cox) multiproduct translog (or other logarithmic) functional form. Reported results have ranged from strong economies to diseconomies and are far from conclusive. The problem is functional form. An alternative...

The deregulation of interest rates in the early 1980s raised bank funding costs and lowered profits. In response, banks raised fees for deposit services, reduced branch operating costs, and shifted to higher earning assets. Rates of return did not regain their pre-deregulation levels until the...

Bank scope economies have been derived from either the standard or generalized (Box-Cox) multiproduct translog (or other logarithmic) functional form. Reported results have ranged from strong economies to diseconomies and are far from conclusive. The problem is functional form. An alternative...

Synergies in providing financial services can reduce costs due to joint production (cost economies of scope) or raise revenues due to joint consumption (revenue economies of scope). Cost economies of scope between bank deposits and loans were found to be small elsewhere. Revenue economies of...

The social cost of a payment system comprises between 1% to 1.5% of GDP. This cost can be reduced if non-cash payments shift from paper to electronics since the cost of an electronic payment is estimated to be from one-third to one-half that of a paper-based transaction. We examine the use of...