An evaluation of the productive efficiency of savings and loans

Robert C.W. Fok*, Sung Ko LI, J. Howard Finch

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)


A nonparametric linear programming approach is adopted to measure the productive efficiency of thrift financial institutions. The methodology is applied to a sample of California thrifts in 1989, yielding high mean efficiency scores. High efficiency scores correspond to high levels of operating efficiency. Estimation of a truncated regression model indicates that the major determinants of thrift efficiency are organization form, management style, risk, and firm size. Applying the methodology to a subset of thrifts from 1986 which had failed by 1989 shows technical inefficiency to be a significant indicator of a high probability of failure.

Original languageEnglish
Pages (from-to)75-90
Number of pages16
JournalJournal of Economics and Finance
Issue number2
Publication statusPublished - Jun 1995

Scopus Subject Areas

  • Finance
  • Economics and Econometrics


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