Efficiency in UK building society branch networks: a comparative analysis using parametric and non-parametric distance functions

While there have been many academic studies of the efficiency of financial institutions at the industry level (see Berger et al 1997a), there have been relatively few studies made of efficiency at the branch level. This is probably due to the difficulty in obtaining adequate branch level data, which is typically not publicly available. As Berger et al (1997b) point out, however, “… ..information on branch efficiency may help improve our understanding of the underpinnings of efficiency at the bank level”.