Efficiency-mission trade-offs in Austrian retail banking

January 1, 2026Open Access

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Key Points

The aim is to explore whether a systematic conflict exists between cost efficiency and the provision of banking services in underserved regions of Austria.
Developed a Supply-Side Index (SSI) combining service availability, credit utilization, and credit resilience.
Analyzed data from approximately 395 Austrian banks from 2014 to 2022 using fixed-effects panel regressions.
Controlled for ownership type, bank size, capitalization, liquidity, and market concentration.
Regional exposure does not lead to measurable additional costs; coefficients are negligible and statistically insignificant.
Public banks and cooperative banks have cost-income ratios 10 to 15 percentage points lower than private banks, contradicting expectations of less efficiency.
No higher net interest margins for banks in underserved regions, indicating fair pricing behavior.

Research investigates cost efficiency versus banking services in underserved regions of Austria, suggesting limited conflict.

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Helge Friedhelm Meinikmann (2026) studied this question.

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