Economic Review

1990

 
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Sep/Oct, 1990

Why do Estimates of Bank Scale Economies Differ?

David B. Humphrey

A number of public policy issues turn on whether or not there are scale economies in commercial banking. This paper examines why empirical tests in this area have yielded differing results. Sorting out the different methodological approaches enables us to develop general conclusions on the size and significance of scale economies in banking.

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