Measuring the efficiency of Bank Branches Using Data Envelopment Analysis (Case Study: City Bank)
The management of bank is always in search of causes of inefficiency and they are trying to destroy this inefficiency and they compete with other competitors to evaluate their performance. To assess and provide solutions to improve the performance, data envelopment analysis used by mathematical programming models that determine the boundary of units with the best relative performance. In this paper, after introducing the model of data envelopment analysis to evaluate and measure the efficiency of 100 branch banks, DEA investigated and found 64 branch was efficient and other was inefficient due to the long distances between the branches of efficient and inefficient, With the implementation of several DEA and remove the top branches again branches were classified on the basis of performance and ultimately results suggest that strategies to improve performance in the DEA model stratified due to the use of experts in the recovery process much more logical and practical. Thus, this model can be a best alternative in similar situations.
Mehregan, MR (2012). DEA quantitative models to assess the performance of organizations, second edition, published an academic book.
Eslami Bigdeli, GR and Kashanipoor, M. (2004), Assessing and an appropriate pattern of bank branches efficiency measurement methods, accounting and auditing journal: 11.38, pp. 27-3.
Afshar Kazemi, M.R, Setayesh, MR, Mehrabian, S., Anvari, K (2005), assess the relative efficiency of Export Development Bank of Iran with DEA, banks and Economics, 75, pp. 48-42.
Khataei, M and Yousefi, R. (2006). Evaluation of Technical Efficiency Housing Bank, using data envelopment analysis, planning and budgeting, 24, p. 103.
Momeni, M. (2010),The new issue of Operations Research, Tehran University.
Hadian, E., Azimi, A (2004), "The banking system's efficiency using DEA". Iranian Journal of Economic Research, No. 20.
Sane, N. (1999), evaluating the efficiency of banking system using the methodology of DEA, Master thesis, University of Alzahra.
Dadgar, Y, Niknemat, Z. (2007), "Application of DEA in evaluating the efficiency of economic units: Case Study of Commercial Bank supervisory.
Banker, R. D., et al, (1984), “Some Models for Estimating Technical Efficiencies in DEA”, Management Science, 30(9):1078-92
H.D.sherman and G. Ladino, "Managing Bank Productivity using Data Envelopment Analysis". Interface,Vol.25,No.2,1995.
Bowlin،W. F. (1999). An Analysis of the Financial Performance of Defense Business Segments Using Data Envelopment Analysis، Journal of Accounting and Public Policy.
Haslem، J. M. and Scheraga،C. A. (2003). Data Envelopment Analysis of Morningstar's Large-cap Mutual Funds،The Journal of Investing،Winter.
Wu, D., Yang, Z., and Liang, L. (2006) «Using DEA-neural network approach to evaluate branch efficiency of a large Canadian bank», Expert Systems with Applications, 31, PP. 108–115.
Lin, Tyrone and Lee Chia (2009). «Application of DEA in analyzing a bank’s operating performance», Expert Systems with Applications, 36, PP. 8883–8891.
Halkos, G. E., Salamouris D. S. Efficiency measurement of the Greek commercial banks with the use of financial ratios: a data envelopment analysis approach. Management Accounting Research 2004; 15: 201-224.
Duzakin E., Duzakin H. Measuring the performance of manufacturing firms with super slacks based model of data envelopment analysis: An application of 500 major industrial enterprises in Turkey. European Journal of Operational Research 2007; 182: 1412-1432.
Debreu, G. (1951). The coefficient of resource utilization. Econometrica, 19(3): 273–292.
Farell MJ. (1957). "The measurement of Productive Efficiency". Journal of the Royal Statistical Society. Series A: 253-182.
Charnes A, Cooper WW and Rhodes E. (1978). "Measuring the efficiency of decision making units". European Journal of Operational Research 2: 429-444.
Banker RD, Charnes A and Cooper WW. (1984). "Some models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis". Management Science. Vol 30. No9: 1078-1092.
Sherman HD and F Gold (1985). “Bank Branch Operating Efficiency.” J Banking and Finance 9(2): 297-315.
Basso،A. and Funari،S. (2001). A Data Envelopment Analysis Approach to Measure the Mutual Fund Performance، European Journal of Operational Research.
Hauner, David (2004), Explaining Efficiency Difference Among Large German and Austrian Bank. IMF Working paper, Africa Department, August
Noulas.g and glaveli. (2002). Bank branch Efficiency:An application of DEA analysis, European Journal of operational Research, Vol.70, No.5, pp.17-31.
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
Copyright ©2022 Academic Journals Center
To make sure that you can receive messages from us, please add the 'academicjournalscenter.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.