?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fmpra.ub.uni-muenchen.de%2F19379%2F&rft.title=European+Banking+Integration+under+a+Quadratic+Loss+Function&rft.creator=Mamatzakis%2C+E&rft.creator=Koutsomanoli%2C+A&rft.subject=D21+-+Firm+Behavior%3A+Theory&rft.subject=G21+-+Banks+%3B+Depository+Institutions+%3B+Micro+Finance+Institutions+%3B+Mortgages&rft.description=European+banking+markets+have+become+increasingly+integrated+in+recent+years%2C+but+barriers+to+full+integration%2C+especially+in+retail+banking%2C+still+remain.+This+paper+covers+a+gap+in+the+literature+by+providing+a+first+insight+into+the+process+of+financial+integration+in+the+European+Union+(EU)+in+terms+of+convergence+in+the+speed+of+adjustment+of+cost+inefficiency+to+equilibrium+level.+We+employ+a+quadratic+loss+function+specification+based+on+forward-looking+rational+expectations+to+model+the+underlying+dynamics+of+efficiency+scores+in+the+banking+industry+of+the+EU-15+region+over+the+period+1998-2005.+Results+show+that+there+is+considerable+variation+in+the+speed+of+adjustment+across+banking+systems%2C+while+over+time+it+also+appears+that+continuing+efforts+to+advance+financial+integration+have+not+as+yet+led+to+an+improvement+in+the+speed+of+adjustment+to+the+long+run+equilibrium.&rft.date=2009-09&rft.type=MPRA+Paper&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.identifier=https%3A%2F%2Fmpra.ub.uni-muenchen.de%2F19379%2F1%2FMPRA_paper_19379.pdf&rft.identifier=++Mamatzakis%2C+E+and+Koutsomanoli%2C+A++(2009)%3A+European+Banking+Integration+under+a+Quadratic+Loss+Function.++Published+in%3A+Economic+Modelling++++&rft.language=en