varlables SelecLlon

All varlables are measured ln mllllons of uS dollars All banks wlLhln Lhe lnLermedlaLlon
framework ln Lhls sLudy6 are modeled as mulLlproducL flrms produclng Lhree ouLpuLs employlng
Lhree lnpuLs as summarlzed ln 1able 1
1he lnLermedlaLlon approach may be more approprlaLe for evaluaLlng enLlre

6
1he lnLermedlaLlon approach was suggesLed by Sealey and Llndley (1977) lL vlews bank as an
lnLermedlaLor of flnanclal servlces and assumes LhaL banks collecL funds (deposlLs and purchased
funds wlLh Lhe asslsLance of labour and caplLal) and Lransform Lhese lnLo loans and oLher asseLs
1he lnLermedlaLlon approach ls preferred over Lhe producLlon approach flrsL proposed by 8ensLon
(1963) because lL sulLs Lhe naLure of Lhe banklng lndusLry more Lhan Lhe producLlon approach