Eficiencia, Competencia y Economias de Escala: Las Reformas Financieras y el Futuro del Sistema Bancario Costarricense
Creators:Camacho, Arnoldo R.
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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. 2149
This paper estimates a profit function for the Costa Rican private commercial banks, in order to evaluate competition and efficiency in the financial market. The extent of economies of scale and of technical and economic efficiency at different types of banks are measured and recommendations for policy reform are derived. Differences in the technologies utilized by the private and the state-owned banks are established. The limited ability of the state-owned banks to compete in a more liberalized environment is confirmed. The private banks show, on the other hand, ample opportunities for expansion, particularly of their role as intermediaries.