ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Economies of Scale in Banking-A Rejoinder

October 8, 1973 Economies of Scale in Banking A Rejoinder Nandini U Joshi ESTIMATION of the cost structure of Indian hanks and the implications of that for banking policy have generated some debate since the Banking Commission submitted its report. Determination of the relationship between the .size of bank and the corresponding operating costs would indicate the economies or diseconomies arising out of the scale of banking operations, and it would thus help in determining the optimum size, at which a bank can avail of the maximum advantage of scale. This would, therefore, have important policy implications for the planning of banking facilities.

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