Transaction Cost of Rural Bank Branches in Bangladesh
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Publisher:Ohio State University. Department of Agricultural, Environmental, and Development Economics
Series/Report no.:Ohio State University. Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional Paper). No. 1352
A system of cost equations is estimated for rural bank branches in Bangladesh in order to evaluate the overall costs of financial intermediation and related cost concepts. Costs of intermediation are well above authorized spreads. The average bank branch displayed constant returns to scale.