Performance and risk in the Brazilian banking industry
Francisco Javier Sáez-Fernández1, Andrés J Picazo-Tadeo2, Ignacio Jiménez-Hernández1
1Department of Spanish and International Economics, University of Granada, Spain.
Abstract:
This paper assesses the technical performance of Brazilian banks while accounting for risk, which is considered as an undesirable outcome of banking. To this end, frontier techniques based on Data Envelopment Analysis and directional distance functions are applied to a sample of 124 banks and data for the six-year period 2014-19. Our main finding is that the Brazilian banking industry could notably increase its production of conventional outputs without additional input usage and while maintaining the same levels of risk. Besides, investment banks are found to be more efficient than commercial banks mainly because of their superior managerial performance.
Related Concept Videos
Types of Biopharmaceutical Studies: Controlled and Non-Controlled Approaches
Non-controlled studies, commonly employed for initial exploration, lack a control group, rendering them susceptible to biases and external influences. In contrast,...
Actuarial Approach
Consider the example of a high-risk surgical procedure with significant early-stage mortality. A two-year clinical study is conducted,...
Relative Risk
Drug Control Governance: Regulatory Bodies and Their Impact
Global Regulatory Systems
Production Efficiency


