Abstract: | Using a multivariate statistical technique, the author examines the impact of scale on the efficiency of commercial bank operations in Nigeria. Data used covers fourteen banks for the period 1975-1979. It was found that economies of scale exist in the operations of the banks examined, with decline in bank costs being greater for large-sized banks than for small-sized banks. It was also found that on the average there are lower labour costs per unit of output (total assets) in large-sized banks than in small and medium-sized banks. Technical efficiency exists in the operations of a majority of the large banks, while the small-sized banks do not possess any advantage in this respect over their large-sized counterparts. Another finding is that there is no point in the range of banks in the sample in which further increases in size lead to higher costs. On the whole there is still ample room for existing banks to exploit economies of scale. Bibliogr., notes, ref., sum. in French. |