The efficient operation of financial intermediaries - banks, insurance and pension fund firms, government agencies - is instrumental for the efficient functioning of the financial system and the fuelling of the economies of the twenty-first century. But what drives the performance of these institutions in today's global environment? The interdisciplinary and international perspective of this volume offers a deep understanding of the drivers of performance in financial institutions. World-renowned scholars from economics, finance, operations management and marketing, and leading industry professionals, bring their expertise to bear. Among their concerns are: the definition and measurement of the efficiency of such institutions; benchmarks of efficiency; identification of performance drivers and measurement of their effects; the impact of financial innovation and information technologies on performance; the effects of process design, human resource management policies and regulations on efficiency; and interrelationships between risk management and operational efficiency.
• State-of-the-art assessments of financial institiutions; best title in field • Can be used as supplementary text in graduate courses on finance and operations research, in NA, Europe, and Australia • World-class contributors include editors and A. Berger, D. Humphrey, L. White and F. Frei
1. What drives the performance of financial institutions? Patrick T. Harker and Stavros A. Zenios; 2. Efficiency of financial institutions: international survey and directions for future research Allen Berger and David Humphrey; 3. Inside the black box: what explains differences in the efficiency of financial institutions Allen Berger and Loretta Mester; Part I. Drivers of Performance: Indentification, Specification, and Measurement: 4. Diversification, organization, and efficiency: evidence from bank holding companies Peter Klein and Marc Saidenberg; 5. Product focus versus diversification: estimates of x-efficiency for the US life insurance industry Joseph Meador, Harley Ryan and Caroline Schellhorn; 6. Outperformance: does managerial specialization pay? Piet Eicholtz, Hans Op't Veld and Mark Schweitzer; 7. Bank relationships: a review Steven Ongena and David C. Smith; 8. Inside the black box: what makes a bank efficient? Frances Frei, Patrick Harker and Larry Hunter; 9. An optimization framework for the triad: capabilities, service quality and performance Andreas Athanassopoulos; 10. Disentagling within- and between-country efficiency differences of bank branches Andreas Soteriou, Andreas Athanassopolulos and Stavros A. Zenios; Part II. Further Drivers of Performance: Innovation, Regulation and Technology: 11. The challenges of new electronic technologies in banking: private strategies and public policies Paul Horvitz and Lawrence J. White; 12. Technological change, financial innovation and financial regulation in the US: the challenge for public policy Lawrence J. White; Part IV. Performance and Risk Management: 14. Risks and returns in relationship and transaction banks: evidence from Bank's returns in Germany, Japan, and the UK and the US Kathryn Dewenter and Alan Hess; 15. Acceptable risk: A study of global currency trading rooms in the US and Japan Srilata Zaheer.
'Harker and Zenios have produced a timely volume to help us understand the keys to superior or inferior performance of banks, insurance companies, pension funds, government agencies and other large financial institutions. The volume is now the standard reference regarding how to define and measure such efficiency and the likely effects of various firms' policy decisions and the industry context and regulations concerning their operations.' William T. Ziemba, University of British Columbia
'An excellent collection of contributions to the study of the performance of financial institutions. In a period in which we observe so many changes in both financial markets and institutions, performance analysis becomes more important than ever. This book helps to find a number of important clues.' Jaap Spronk, Erasmus University, Rotterdam