Bank branch operating efficiency: evaluation with data envelopment analysis
By R. T. Zarinkamar, Akbar Alam-Tabriz. 2014
279 citations recorded by the source corpus.
Article history: Received January 20, 2014 Accepted 30 August 2014 Available online September 9 2014 Measuring the relative efficiency of similar units has been a popular research especially when the units were mostly non-financial. Even, similar financial units may not be necessarily evaluated based on traditional financial figures such as return of equities, return of assets, etc. In this paper, we present an empirical investigation to measure the relative efficiency of 30 branches of an Iranian bank named Bank Mellat. The study considers four inputs including operating expenses, interest paid, capital expenditures and fixed assets. In addition, we use customers’ bank deposit, commissions and loans paid as output parameters. Using three different data envelopment analyses, the study measures the relative efficiencies of all units. The preliminary results indicate that most banks were working under desirable level of efficiency. © 2014 Growing Science Ltd. All rights reserved. DEA Data envelopment analysis Efficiency Banking industry
Subfields: Accounting, Finance, Management Science and Operations Research
View Paper: https://www.semanticscholar.org/paper/efa0ee1da8544b07d46a013736cf85015002fa19
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Citations in the corpus
- A survey of DEA applications (2013, background): “A significant work following Sherman and Gold [14] is Rangan et al. [18], which was the first to introduce the two-step contextual DEA method to the banking application.”
- Managerial efficiency in Taiwan bank branches: A network DEA (2012, background): “Most previous studies evaluate banking efficiency according to the bank's activities using the production approach (Athanassopoulos and Giokas, 2000; Ferrier and Lovell, 1990; Sherman and Gold, 1985), whereby banking activity is depicted as the production of services using input resources and expens”