Studying the Bancassurance Phenomenon: An Empirical Exploratory Analysis on a European Sample
As outlined in Chapter 6, cost and revenue synergies are commonly recognized as one of the main economic rationales for bank diversification into the insurance industry. Nevertheless, there are only a very few studies dealing with efficiency issues and specifically focussing on bancassurance. This chapter aims to present the empirical analysis conducted on a European sample in order to answer the following research question: are banks engaged in the insurance business more cost and profit efficient than their competitors specialised in traditional and investment banking?
KeywordsData Envelopment Analysis Efficiency Score Commercial Bank Stochastic Frontier Stochastic Frontier Analysis
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