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US Bank efficiency and FED activity
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CitationAl Masud, M. I., & Kutlu, L. (2018). US bank efficiency and FED activity. Economics Bulletin, 38(4), pp. 2047-2059.
We examine the relationship between cost efficiency of US banks and FED activity level. It turns out that FED actions have a positive effect on cost efficiencies of the US banks. In particular, as the number of FED actions increases, the cost efficiencies of the US banks increases. This illustrates the importance of FED's role in reaching a more cost efficient banking system.