Is there a single frontier in a single European banking market?

J. W. B. Bos*, H. Schmiedel

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

103 Citations (Web of Science)


This paper attempts to estimate comparable efficiency scores for european banks operating in the single market in the eu. Using a data set of more than 5000 large commercial banks from all major european banking markets over the period 1993–2004, the application of meta-frontiers enables us to assess the existence of a single and integrated european banking market. We find evidence in favor of a single european banking market characterized by cost and profit meta-frontiers. However, compared to the meta-frontier estimations, pooled frontier estimations tend to underestimate efficiency levels and correlate poorly with country-specific frontier efficiency ranks.
Original languageEnglish
Pages (from-to)2081-2102
JournalJournal of Banking & Finance
Issue number7
Publication statusPublished - Jul 2007
Externally publishedYes


  • X-efficiency
  • Stochastic frontiers
  • banking
  • meta-frontiers
  • technology gap ratios

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