This paper examines the performance of go-public banks from 2001 to 2003. Using model fourier-flexible in cost function and profit function, and a broad definition of bank output, input and netputs, we find evidence of a small cost and profit inefficiencies in go-public banks. We also find evidence of a large cost and profit efficiencies for large banking definition than for small banking definition. The large banking definition did not infer higher expansion path scale economies than the small banking definition. In the contrary, the small banking definition did not higher expansion path diversification or scope economies than the large banking definition. Therefore, the small banking definition that more focuses on specialize product activities leads to efficiency than large banking definition. In the contrary, the large banking definition more that focuses on diversification product activities leads to efficiency than small banking definition. This paper suggest that using bank Off-Balance Sheet activities in cost and profit function will more improvement the indicators of cost efficiency, profit efficiency, expansion path scale economies, and expansion path diversification or scope economies. Taken together, these results suggest more benefit using the above indicators to evaluate banks performance for investors and grouping banks in the national baking system.
