Measuring the efficiency of Bank Branches Using Data Envelopment Analysis (Case Study: City Bank)

Omid Faraji, Mohammad Ali Barghi Fushazdeh

Abstract


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.


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