Using a sample of US banks between 2001 and 2013, this paper investigates the impact of competition on bank efficiency, the bank-specific factors that increase the likelihood of securitization, the previously untested impact of securitization on efficiency, and the effect of the interaction...

This paper investigates the different effects of competition and securitization on US bank efficiency between 2001 and 2019. Using Propensity Score Matching (PSM) and a two-step dynamic Generalized Method of Moments (GMM) estimation, we find that higher securitization increases banks’ cost...

We show that higher capital and liquidity ratios increase the efficiency of conventional and Islamic banks. Using conditional quantile regressions, we further show that the effect is stronger for highly efficient, small, highly liquid, and highly capitalized conventional banks. We also find that...