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    DEA and Banking


    On this page, we have provided all the information about DEA and banking that may be interesting and useful to users. This page contains the following sections:

    1. Background

    2. Key papers

    3. New interesting papers

    4. Related subject

    5. Statistics

    6. References

    Highlights: 

    •  A classification of the articles by year reveals that a large percentage of the research articles has been published in the last years, with 2016 being the peak year for articles published in DEA and banking.

    •  The most popular keywords are DEA (Data envelopment analysis), Bank, Efficiency, Bank performance and Financial.

    •  European Journal of Operational ResearchJournal of Banking & Finance and Expert Systems with Applications are the journals that have published the greatest number of DEA and banking papers.

    •  Sherman and Ladino: " It identified over $6 million of annual expense saving not identifiable with traditional financial and operating ratio analysis in its 33-branch system".

      Thompson and friends: " The ARs eliminated (i) 44% to 60% of the DEA-extreme-efficient DMUs and (ii) all of the banks with unprofitable actual profit ratios".

    •  Feng and Wang: " Why European banks are less profitable than U.S. banks".

    BACKGROUNDT

     

    DEA has been demonstrated to be effective for benchmarking in many service industries involving complex input–output relationships. There have been numerous published applications of DEA to measure the efficiency of banks and branch systems. Sherman and Gold presented the first paper that applies DEA to study bank efficiency. It used the classical CCR model to compare operating efficiencies among 14 branch offices of a savings bank. Their claim, that DEA results provide meaningful in  sights not available from other techniques, invited a series of subsequent DEA studies.

     Methodology improvement   

    Two lines of research have emerged around the DEA methodology improvement:1. extending the traditional DEA models and combining DEA models with other advanced operational research methodologies. Examples of extending traditional DEA models include:

    • Service quality and operating efficiency synergies for management control in the provision of financial services: evidence from Greek bank branches
    A.D. Athanassopoulos
    European Journal of Operational Research, 1997


    A quasi-concave DEA model with an application for bank branch performance evaluation

    D. Dekker and T. Post
    European Journal of Operational Research, 2001

     
    Model improvement for computational difficulties of DEA technique in the 
    presence of special DMUs

    M.R. Alirezaee, M. Afsharian
    Applied Mathematics and Computation, 2007

     

    2. Some studies combined other operational research techniques with the DEA model to make the efficiency estimation more accurate and to extend the model’s application scope. Examples include:

    Sales performance measurement in bank branches
    W.D. Cook, M. Hababou
    Omega, 2001


    • Visualizing efficiency and reference relations in data envelopment analysis
     
    with an application to the branches of a German bank

    M. Porembski, K. Breitenstein, P. Alpar
    Journal of Productivity Analysis, 2005


    • Target setting in the general combined-oriented CCR model using an interactive MOLP method

    F.H. Lotfi, G.R. Jahanshahloo, A. Ebrahimnejad, M. Soltanifar, S.M. Mansourzadeh
    Journal of Computational and Applied Mathematics, 2010


    Banks' activities can be divided into:

    • retail banking, dealing directly with individuals and small businesses;
    • business banking, providing services to mid-market business;
    • corporate banking, directed at large business entities;

    • private banking, providing wealth management services to high-net-worth individuals and families;
    • investment banking, relating to activities on the financial markets

       Efficiency measurement models     

    For measuring the efficiency of banks, different authors apply different specifications of DEA model. Diversity of the applied models primarily is determined by various input-output combinations. Generally, there are three main models for evaluating branch performance:
    1. The production model

    This approach views bank branches as producers of services and products using labor and other resources as inputs and providing deposits, loans, and others as outputs. Examples include:
    Measuring the efficiency of service operations—an application to bank branches
    C Parkan
    Engineering Costs and Production Economics, 1987

    • An empirical study on analyzing the productivity of bank branches
    M Oral, O Kettani, R Yolalan
    IIE Transactions, 1992


    2. profitability model
    Profitability analysis is used to assess the ability of a branch to convert its expenses into revenues. Examples of such studies include:
    • Two-stage evaluation of bank branch efficiency using data envelopment analysis
    J.C. Paradi, b. Stephen Rouatt, Zh. Haiyan
    Omega, 2011


    • Evaluating the operational and profitability efficiency of a UAE-based commercial bank
    H.A.H Al-Tamimi, A.M. Lootah
    Journal of Financial Services Marketing, 2007


    3. The intermediary model

    The branch’s intermediary role is mainly used to examine how organizationally efficient the branch is in collecting deposits and other funds from customers (inputs) and then lending the money in various forms of loans, mortgages, and other assets.
    • Cost efficiency, production and value-added models in the analysis of bank branch performance
    A.S. Camanho, R.G. Dyson
    Journal of the Operational Research Society, 2005


    • Adjusting for cultural differences, a new DEA model applied to a merged bank
    J.C. Paradi, S. Vela, H. Zhu
    Journal of Productivity Analysis, 2010


       Various perspectives of DEA applications in bank branch research   
    1. Branch cost efficiency analysis
    Cost efficiency evaluates the ability of a branch to produce current outputs at minimal cost. It is the result of technical efficiency and allocative efficiency. The measurements require the input and output quantity data as well as the information of input prices at each branch. There are several examples in this research area:
    • Nonparametric frontier models for assessing the market and cost efficiency of large-scale bank branch networks
    AD Athanassopoulos
    Journal of Money, Credit, and Banking, 1998


    • Cost efficiency measurement with price uncertainty: a DEA application to bank branch assessments
    AS Camanho, RG Dyson
    European Journal of Operational Research, 2005


    2. Efficiency ranking

    Bank branch efficiency ranking is one of the interesting research areas in DEA applications. Some studies are:
    • Performance evaluation of commercial bank branches using data envelopment analysis
    B.F. Yavas, D.M. Fisher
    Journal of Business and Management, 2005


    • A complete ranking of DMUs using restrictions in DEA models

    M.R. Alirezaee, M. Afsharian
    Applied Mathematics and Computation, 2007


    3. Branch studies incorporating service quality

    There are mainly two ways to incorporate service quality factors into branch performance analyses, either directly into the DEA model or conducting post-hoc analyses on the relationship between the DEA efficiency scores and the service quality reported.
    • A data envelopment analysis of the operational efficiency of bank branches
    B Golany, JE Storbeck
    Interfaces,1999


    • An internal customer service quality data envelopment analysis model for bank branches
    A.C Soteriou, Y Stavrinides
    International Journal of Operations and Production Management, 1997


    4. Environments and technology impacts on branch performance
    Traditional DEA models are designed to evaluate the relative efficiencies of production units that operate in similar operating environments, otherwise, the efficiency analysis may lead to an unreliable economic conclusion. The requirement for a homogenous operating environment limits the application of DEA in many real-world cases. Some researchers have noticed this limit and introduced several different strategies to estimate managerial inefficiency by accounting for the exogenous impacts, such as the impacts of locations, market power, regulations, organization, and new technologies. McEachern and Paradi assessed bank branch profitability and productivity across seven national branch networks operated by a multinational financial services corporation.
    • Intra- and inter-country bank branch assessment using DEA
    D. Mc Eachern, J.C. Paradi
    Journal of Productivity Analysis, 2007


    5. Effects of mergers and acquisition on branch performance
    The effects of mergers and acquisitions on branch efficiency have been less intensely investigated. How the efficiency effects of mergers and acquisitions on the branch level differ from the bank merger studies that rely on externally reported financial data on the entire bank’s performance was examined. Only one study has been found applying DEA to this issue. Sherman and Rupert analyzed merger benefits and identified cost savings opportunities based on the comparison of branch operating efficiencies in the merged bank and four pre-merger banks.
    • Do bank mergers have hidden or foregone value? Realized and unrealized operating synergies in one bank merger
    HD Sherman, TJ Rupert
    European Journal of Operational Research, 2006

     

    6. Unusual banking applications of DEA

    DEA has also been applied to solve some specific problems. Nash and Sterna-Karwat using DEA measured the effectiveness of cross-selling financial products among 75 bank branches in Australia. Soteriou and Zenios examined the efficiency of bank product costing at the branch level. Their study focused on allocating total branch costs to the product mix offered by the branch and obtaining a reliable set of cost estimates for these products. Stanton investigated the relationship managers’ efficiencies at the branch level in one of Canada’s largest banks. Jablonsky proposed a DEA model for forecasting branch future efficiency bounds based on interval input–output data from the bank management’s pessimistic and optimistic predictions. Wu applied a DEA model as a data filter to create a sub-sample training data set used for neural networks to evaluate branch efficiency.

    • An application of DEA to measure branch cross selling efficiency
    D. Nash, A. Sterna-Karwat
    Computers and Operations Research, 1996


    • Using data envelopment analysis for costing bank products
    A.C. Soteriou, S.A. Zenios
    European Journal of Operational Research, 1999

    KEY PAPERS

    This section introduces key papers in the DEA and banking. These papers have had a significant impact on the DEA and its application in bank performance.

    Bank branch operating efficiency evaluation with data envelopment analysis
    Authors: H. David Sherman and Franklin Gold
    Journal: Journal of Banking and Finance
    Published: 1985

    Abstract: Measuring and evaluating the operating efficiency of bank branches requires analytic techniques that provide insights beyond those available from accounting ratio analysis. Data Envelopment Analysis (DEA), a mathematical programming technique, provides useful insights in locating inefficient branches by explicitly considering the mix of services provided and the resources used to provide these bank services. Bank management finds the DEA results provide meaningful insights not available from other techniques that focus on ways to improve productivity. The results suggest that DEA is a beneficial complement to other techniques for improving bank branch efficiency.

    Authors: H. David Sherman and George Ladino
    Journal: Interfaces
    Published:1995

    Abstract: One bank used data envelopment analysis (DEA) to substantially improve its branch productivity and profits while maintaining service quality. It identified over $6 million of annual expense saving not identifiable with traditional financial and operating ratio analysis in its 33-branch system. A fairly new linear-programming based benchmarking technique, DEA explicitly considers all the resources each branch uses and the services it provides. It compares branches objectively to identify the best-practice branches, the less productive branches, and the changes the less productive branches need to make to reach the best-practice level and to improve their profitability.

    Measuring the efficiency of service operations: an application to bank branches
    Author: Celik Parkan
    Journal: Engineering Costs and Production Economics
    Published:1987

    Abstract: This paper discusses an application of Data Envelopment Analysis to bank branches to identify any operational inefficiencies. Data related issues and implementation difficulties are also included.

     

    The technical efficiency of United States banks
    Authors: Rangan N, Grabowski R, Aly HY, Pasurka C
    Journal: Economics Letters
    Published:1988
    Abstract: The paper uses a non-parametric frontier approach to measure the technical efficiency of a sample of U.S. banks. The results indicate that these banks could have produced the same level of output with only 70% of the inputs actually used. In addition, most of this inefficiency is due to pure technical inefficiency (wasting inputs) rather than scale inefficiency (operating at non-constant returns to scale). Finally, regression analysis indicates that the technical efficiency of the banks is positively related to size, negatively related to product diversity, and not at all related to the extent to which branch banking is allowed.

    A nonparametric approach to measurement of efficiency and technological change: the case of large United States com- mercial banks
    Authors: Elyasiani E, Mehdian SM
    Journal: Journal of Financial Services Research
    Published:1990
    Abstract: The purpose of this paper is to derive the efficiency measures and the rate of technological change for a sample of large U.S. commercial banks by employing a nonparametric technique. This technique is used to construct a multiproduct production frontier relative to which the efficiency measures of the banks in the sample are calculated and the displacement of which over time provides a measure of the rate of technological change. The empirical results indicate that the relevant frontier shifted inward between 1980 and 1985 reflecting a high pace of technological advancement achieved by the banks in the sample. The pace varied significantly across the banks with some banks even regressing over time.

     

    Malmquist indexes of productivity growth during the deregulation of Norwegian banking
    Authors: Berg SA, Forsund FR, Jansen ES
    Journal: Journal of Financial Services Research
    Published:1992
    Abstract: Productivity growth during the deregulation of the Norwegian banking industry is studied within the framework of Data Envelopment Analysis, which explicitly allows for multiple outputs. Introducing Malmquist indices for productivity growth, total growth can be decomposed into frontier growth and change in each bank's distance to the frontier. Both the total growth index and its components can be consistently chained over time. We find productivity regress at the average bank prior to the deregulation, but rapid growth when deregulation took place. Deregulation also led to less dispersion of productivity levels within the industry.

    Banking efficiency in the Nordic countries
    Authors: Berg SA, Forsund FR, Hjalmarsson L, Suominen M
    Journal: Journal of Banking & Finance 1993
    Published:1993
    Abstract: Evidence of the relative competitiveness of the banking industries in three Nordic countries is provided, by applying Data Envelopment Analysis of productivity on the national and the pooled data sets. The analysis produces a detailed account of how well banks from different countries and different sizes may be prepared to meet the more intense competition of a common European banking market.

    DEA/AR profit ratios and sensitivity of 100 large US banks
    Authors: Thompson RG, Brinkmann EJ, Dharmapala PS, GonzalezLima MD, Thrall RM
    Journal: European Journal of Operational Research
    Published:1997
    Abstract: Several important DEA/AR concepts were applied here to banking for the first time. This application includes classification, sensitivity, uniqueness, linked cones (LCs), and profit ratios. Notably, large bank behavior seems to be explained better by profit ratios than by relative efficiency. Measures of DEA efficiency, AR efficiency, and LC profit ratios were made for a bank panel of the U.S.'s 100 largest banks in asset size from 1986 to 1991. High levels of inefficiency were found, as in previous studies. Classification of the DEA efficiency measures identified the inefficient DMUs with some positive primal slacks. Sensitivity analysis of the DEA efficiency measures showed that the extreme-efficient classification was generally relatively insensitive to errors in the data. The ARs eliminated (i) 44% to 60% of the DEA-extreme-efficient DMUs and (ii) all of the banks with unprofitable actual profit ratios. Some statistical analyses highlight the superiority of the LC profit ratios, relative to the AR efficiency measures.

    Efficiency of financial institutions: international survey and directions for future research
    Authors:
    Berger AN, Humphrey DB
    Journal: European Journal of Operational Research
    Published:1997
    Abstract: This paper surveys 130 studies that apply frontier efficiency analysis to financial institutions in 21 countries. The primary goals are to summarize and critically review empirical estimates of financial institution efficiency and to attempt to arrive at a consensus view. We find that the various efficiency methods do not necessarily yield consistent results and suggest some ways that these methods might be improved to bring about findings that are more consistent, accurate, and useful. Secondary goals are to address the implications of efficiency results for financial institutions in the areas of government policy, research, and managerial performance. Areas needing additional research are also outlined.

    Profit ability and market ability of the top 55 US commercial banks
    Authors: Seiford LM, Zhu J
    Journal: Management Science
    Published:1999
    Abstract: Utilizing recent developments in data envelopment analysis (DEA), this paper examines the performance of the top 55 U.S. commercial banks via a two-stage production process that separates profitability and marketability. Substantial performance inefficiency is uncovered in both dimensions. Relatively large banks exhibit better performance on profitability, whereas smaller banks tend to perform better with respect to marketability. New context-dependent performance measures are defined for profitability and marketability which employ a DEA stratification model and a DEA attractiveness measure. When combined with the original DEA measure, the context-dependent performance measure better characterizes the profitability and marketability of 55 U.S. commercial banks. The new approach identifies areas for improved bank performance over the two-stage production process. The effect of acquisition on efficiency and attractiveness is also examined.

    Evaluating the profit ability and market ability efficiency of large banks—an application of data envelopment analysis
    Authors: Luo XM
    Journal: Journal of Business Research
    Published: 2003
    Abstract: Banking efficiency literature mostly addressed profitability efficiency (activities generating more profits for a bank), ignoring marketability efficiency (activities generating more market value). Applying a nonparametric frontier method—data envelopment analysis (DEA)—with a sample of 245 large banks, this study provides evidence that current large banks acquire relatively lower level of marketability efficiency. There are 34 (about 14%) banks that obtain higher level of profitability performance but lower level of marketability performance. Results also indicate that the geographical location of banks seems not related to either the profitability or marketability efficiency. Finally, overall technical efficiency (OTE) of the profitability performance can predict the likelihood of bank failures.

    Does size matter? Finding the profit ability and market ability benchmark of financial holding companies
    Authors: Lo SF, Lu WM
    Journal: Asia-Pacific Journal of Operational Research
    Published:2006
    Abstract: The aim of this paper is to explore the efficiency and the benchmarks of financial holding companies (FHCs) for a small open economy, Taiwan. We employ a two-stage production process including profitability and marketability performance using a non-parametric frontier method — data envelopment analysis (DEA). Furthermore, the factor-specific measure and BCC (Banker–Charnes–Cooper) model are combined together not only to identify the inputs/outputs that are most important but also to distinguish those FHCs which can be treated as benchmarks. Our empirical result shows that (1) big-sized FHCs are generally more efficient than small-sized ones; (2) FHCs with the main body of insurance averagely perform better than the other two types (banks and securities); (3) while small efficient FHCs are easily to become benchmarks, big efficient FHCs are deemed as competitive niche players; (4) further mergers and acquisitions among FHCs should be considered so as to achieve economies of scale. The profitability/marketability matrix of FHCs is also presented.

    Two-stage evaluation of bank branch efficiency using data envelopment analysis
    Authors: Joseph C., Paradi a, Stephen Rouatt b, Haiyan Zhu
    Journal: Omega
    Published: 2011
    Abstract: There are two key motivations for this paper: (1) the need to respond to the often observed rejections of efficiency studies’ results by management as they claim that a single-perspective evaluation cannot fully reflect the operating units’ multi-function nature; and (2) a detailed bank branch performance assessment that is acceptable to both line managers and senior executives is still needed. In this context, a two-stage Data Envelopment Analysis approach is developed for simultaneously benchmarking the performance of operating units along different dimensions (for line managers) and a modified Slacks-Based Measure model is applied for the first time to aggregate the obtained efficiency scores from stage one and generate a composite performance index for each unit. This approach is illustrated by using the data from a major Canadian bank with 816 branches operating across the nation. Three important branch performance dimensions are evaluated: Production, Profitability, and Intermediation. This approach improves the reality of the performance assessment method and enables branch managers to clearly identify the strengths and weaknesses in their operations. Branch scale efficiency and the impacts of geographic location and market size on branch performance are also investigated. This multi-dimensional performance evaluation approach may improve management acceptance of the practical applications of DEA in real businesses.
    NEW INTERESTING PAPERS

    The using of the DEA technique in the banking sector is increasing over time. This section introduces new articles that present a new method or significant results in this area.
     
    Why European banks are less profitable than U.S. banks: A decomposition approach
    Authors: Guohua Feng, Chuan Wang
    Journal: Journal of Banking and Finance
    Published: 2018
    Abstract: The low profitability of European banks relative to their U.S. counterparts has recently raised concerns among policy makers and researchers. This paper attempts to shed light on this issue by using the O’Donnell (2012) decomposition approach. This approach enables us to decompose the relative profitability of European banks into an output–input price index and a total factor productivity index, with the former further decomposed into two price indexes and the latter further into four productivity and efficiency measures. Our results show that European banks’ profitability was not only weak, but also deteriorated over time. Our further analysis shows that the decline in the output–input price index was due to declines in relative lending rate and relative return on securities and an increase in funding costs, while the decline in the productivity index was driven by declines in technical efficiency, scale efficiency, and residual mix efficiency.

    Chinese bank efficiency during the global financial crisis: A combined approach using satisficing DEA and Support Vector Machines
    Authors: Zhong fei Chen, Roman Matousek, Peter Wanke
    Journal: The North American Journal of Economics and Finance
    Published: 2018

    Abstract: The paper examines Chinese bank efficiency with a unique sample of 127 banks during the peak period of the global financial crisis. We apply an innovative Data Envelopment Analysis method under a stochastic environment. In the first stage, within the ambit of the satisficing Data Envelopment Analysis model, the probabilities of achieving a minimal performance threshold are computed in a stochastic way. In the second subsequent stage, Support Vector Machine regression is applied to discriminate between high/low efficiency groups within each performance threshold. The results reveal that the overall efficiency level of the Chinese banks remains still low. This is considerably determined by the contextual variables of the ownership structure and cost structure of the Chinese banks. Policy implications are derived how to improve the corporate governance and credit allocation.

    Two-stage DEA-Truncated Regression: Application in Banking Efficiency and Financial Development
    Authors: Filipa Da Silva Fernandes, Charalampos Stasinakis, Valeriya Bardarova
    Journal: Expert System With Applications
    Published: 2018
    Abstract: This study evaluates the efficiency of peripheral European domestic banks and examines the effects of bank-risk determinants on their performance over 2007-2014. Data Envelopment Analysis is utilized on a Malmquist Productivity Index in order to calculate the bank efficiency scores. Next, a Double Bootstrapped Truncated Regression is applied to obtain bias-corrected scores and examine whether changes in the financial conditions affect differently banks‟ efficiency levels. The analysis accounts for the sovereign debt crisis period and for different levels of financial development in the countries under study. Such an application in the respective European banking setting is unique. The proposed method also copes with common misspecification problems observed in regression models based on efficiency scores. The results have important policy implications for the Euro area, as they indicate the existence of a periphery efficiency meta-frontier. Liquidity and credit risk are found to negatively affect banks productivity, whereas capital and profit risk have a positive impact on their performance. The crisis period is found to augment these effects, while bank-risk variables affect more banks' efficiency when lower levels of financial development are observed.
    RELATED SUBJECT

     

    STATISTICS

    In this section, we list a series of selected descriptive statistics involving the numbers and distributions of papers, journals and keywords of DEA and banking related articles during the years 1985 to 2018.

    1. Statistics involving publications by year

    After the first paper of the Sherman and Gold (1985) that applied DEA to study bank sector, there was a significant growth in the number of publications. The following chart shows the distribution of DEA banking articles published by year. The greatest number of articles is in 2016 (75 articles). It shows that the using of DEA technique in the banking sector is increasing.

      

       

     

    2. Statistics involving publications by journal
    The following chart shows ten journals that have published the greatest number of DEA banking papers in the past years. Journals such as European Journal of Operational Research, Journal of Banking & Finance and Expert Systems with Applications are the most utilized.

     

         

     

    3. Statistics involving keywords used
    The following table lists the most popular keywords by number of publications.

     

    REFRENCES

    50. Foreign bank entry, deregulation and bank efficiency: Lessons from the Australian experience
    Jan-Egbert Sturm, Barry Williams
    Journal of Banking & Finance, Volume 28, Issue 7, Pages 1775-1799
    July 2004
    Keywords: Foreign banks, Deregulation, Data envelopment analysis, Malmquist indices, Stochastic frontier analysis



    49. Efficiency measurement of the Greek commercial banks with the use of financial ratios: a data envelopment analysis approach
    George E. Halkos, Dimitrios S. Salamouris
    Management Accounting Research, Volume 15, Issue 2, Pages 201-224
    June 2004
    Keywords: Banking, Financial ratios, Data envelopment analysis



    48. Multi-component performance, progress and regress measurement and shared inputs and outputs in DEA for panel data: an application in commercial bank branches
    G. R. Jahanshahloo, A. R. Amirteimoori, S. Kordrostami
    Applied Mathematics and Computation, Volume 151, Issue 1, Pages 1-16
    30 March 2004
    Keywords: Data envelopment analysis, Efficiency, Progress and regress



    47. Performance measurement with classification information: an enhanced additive DEA model
    Kamel Bala, Wade D. Cook
    Omega, Volume 31, Issue 6, Pages 439-450
    December 2003
    Keywords: DEA, Expert knowledge, Additive model, Classification tools



    46. The effect of scale and mode of ownership on the financial performance of the Turkish banking sector: results of a DEA-based analysis
    Muhammet Mercan, Arnold Reisman, Reha Yolalan, Ahmet Burak Emel
    Socio-Economic Planning Sciences, Volume 37, Issue 3, Pages 185-202
    September 2003
    Keywords: Commercial banks, Data Envelopment Analysis (DEA), Bank performance



    45. Efficiency of banks in a developing economy: The case of India
    Milind Sathye
    European Journal of Operational Research, Volume 148, Issue 3, Pages 662-671
    1 August 2003
    Keywords: Bank efficiency, DEA analysis, Indian banks



    44. Evaluating the profitability and marketability efficiency of large banks: An application of data envelopment analysis
    Xueming Luo
    Journal of Business Research, Volume 56, Issue 8, Pages 627-635
    August 2003
    Keywords: Bank efficiency, Marketability, Data envelopment analysis, Bank failure

     


    43. A credit scoring approach for the commercial banking sector
    Ahmet Burak Emel, Muhittin Oral, Arnold Reisman, Reha Yolalan
    Socio-Economic Planning Sciences, Volume 37, Issue 2, Pages 103-123
    June 2003
    Keywords: Credit scoring, Performance evaluation, Data envelopment analysis, Market disruption, Global effects



    42.Efficiency in Japanese banking: An empirical analysis
    Leigh Drake, Maximilian J. B Hall
    Journal of Banking & Finance, Volume 27, Issue 5, Pages 891-917
    May 2003
    Keywords: Data envelopment analysis, Technical and scale efficiency, Banks



    41. The performance of the Greek banking system in view of the EMU: results from a non-parametric approach

    Efthymios G Tsionas, Sarantis E. G Lolos, Dimitris K Christopoulos
    Economic Modelling, Volume 20, Issue 3, Pages 571-592
    May 2003
    Keywords: Technical efficiency, Allocative efficiency, Productivity, Data Envelopment Analysis, Banking



    40. Long- and short-run non-parametric cost frontier efficiency: An application to Spanish savings banks
    Diego Prior
    Journal of Banking & Finance, Volume 27, Issue 4, Pages 655-671
    April 2003
    Keywords: Banking, Data Envelopment Analysis, Short-run efficiency, Capacity utilisation



    39. The evaluation of bank branch performance using data envelopment analysis: A framework
    Raman Manandhar, John C. S. Tang
    The Journal of High Technology Management Research, Volume 13, Issue 1, Pages 1-17
    Spring 2002
    Keywords: Bank branch efficiency, Data envelopment analysis (DEA), Internal service quality, Benchmarking



    38. Dealing with interval scale data in data envelopment analysis
    Merja Halme, Tarja Joro, Matti Koivu
    European Journal of Operational Research, Volume 137, Issue 1, Pages 22-27
    16 February 2002
    Keywords: Efficiency analysis, Data envelopment analysis, Interval scale variables, Negative variables



    37. Trends in relationship lending and factors affecting relationship lending efficiency
    Kenneth R. Stanton
    Journal of Banking & Finance, Volume 26, Issue 1, Pages 127-152
    January 2002
    Keywords: Bank, Efficiency, Profit, Relationship lending, Data envelopment analysis



    36. Can mergers ensure the survival of credit unions in the third millennium?
    Deborah Ralston, April Wright, Kaylee Garden
    Journal of Banking & Finance, Volume 25, Issue 12, Pages 2277-2304
    December 2001
    Keywords: Efficiency, Mergers, Credit unions



    35. Measuring economic efficiency with incomplete price information: With an application to European commercial banks
    Timo Kuosmanen, Thierry Post
    European Journal of Operational Research, Volume 134, Issue 1, Pages 43-58
    1 October 2001
    Keywords: Economic efficiency measurement, Imperfect price information, Data envelopment analysis (DEA), Weight-restricted models, Free disposable hull (FDH)



    34. Sales performance measurement in bank branches
    Wade D. Cook, Moez Hababou
    Omega, Volume 29, Issue 4, Pages 299-307
    August 2001
    Keywords: Data envelopment analysis, Sales, Service, Shared resources, Banking, Efficiency, Non-volume related activities



    33. A quasi-concave DEA model with an application for bank branch performance evaluation
    David Dekker, Thierry Post
    European Journal of Operational Research, Volume 132, Issue 2, Pages 296-311
    16 July 2001
    Keywords: Data envelopment analysis, Quasi-concavity, Bank branch evaluation



    32. Extended DEA-Discriminant Analysis
    Toshiyuki Sueyoshi
    European Journal of Operational Research, Volume 131, Issue 2, Pages 324-351
    1 June 2001
    Keywords: Discriminant analysis, Goal programming, Data envelopment analysis



    31. Productivity growth in large US commercial banks: The initial post-deregulation experience
    Kankana Mukherjee, Subhash C. Ray, Stephen M. Miller
    Journal of Banking & Finance, Volume 25, Issue 5, Pages 913-939
    May 2001
    Keywords: Bank productivity, Malmquist index, Deregulation



    30. X-efficiency in Australian banking: An empirical investigation
    Milind Sathye
    Journal of Banking & Finance, Volume 25, Issue 3, Pages 613-630
    March 2001
    Keywords: Bank efficiency, Mergers, DEA analysis



    29. DEA and its use in the regulation of water companies
    Emmanuel Thanassoulis
    European Journal of Operational Research, Volume 127, Issue 1, Pages 1-13
    16 November 2000
    Keywords: Data envelopment analysis, Performance measurement, Regulation, Water industry



    28. The use of data envelopment analysis in the regulation of UK water utilities: Water distribution
    Emmanuel Thanassoulis
    European Journal of Operational Research, Volume 126, Issue 2, Pages 436-453
    16 October 2000
    Keywords: Data envelopment analysis, Performance measurement, Regulation



    27. Rating of Indian commercial banks: A DEA approach
    Asish Saha, T. S. Ravisankar
    European Journal of Operational Research, Volume 124, Issue 1, Pages 187-203
    1 July 2000
    Keywords: Indian banks, Efficiency, Productivity, Rating, Data envelope analysis



    26. The evidence on efficiency gains: The role of mergers and the benefits to the public

    Necmi Kemal Avkiran
    Journal of Banking & Finance, Volume 23, Issue 7, Pages 991-1013
    July 1999
    Keywords: Bank efficiency, Mergers, DEA analysis



    25. DEA-discriminant analysis in the view of goal programming
    Toshiyuki Sueyoshi
    European Journal of Operational Research, Volume 115, Issue 3, Pages 564-582
    16 June 1999
    Keywords: Discriminant analysis, Goal programming, Data envelopment analysis



    24. DEA efficiency profiles of U.S. banks operating internationally
    John A. Haslem, Carl A. Scheraga, James P. Bedingfield
    International Review of Economics & Finance, Volume 8, Issue 2, Pages 165-182
    June 1999
    Keywords: DEA, U.S. banks, Efficiency, International, Input/output



    23. Protein-DNA interactions: a structural analysis
    Susan Jones, Paul van Heyningen, Helen M. Berman, Janet M. Thornton
    Journal of Molecular Biology, Volume 287, Issue 5, Pages 877-896
    16 April 1999
    Keywords: Protein-DNA complex, motif, binding modes, interface, DNA distortion


    22. Using data envelopment analysis for costing bank products
    Andreas C. Soteriou, Stavros A. Zenios
    European Journal of Operational Research, Volume 114, Issue 2, Pages 234-248
    16 April 1999
    Keywords: DEA, Bank product cost allocation, Bank branch efficiency


    21. Measurement of the performance of an investment bank using the operational competitiveness rating procedure
    Celik Parkan, Ming-Lu Wu

    Omega, Volume 27, Issue 2, Pages 201-217
    April 1999
    Keywords: Performance measurement, OCRA, Efficiency/productivity analysis, DEA

     

    20. Combining ranking scales and selecting variables in the DEA context: The case of industrial branches
    Lea Friedman, Zilla Sinuany-Stern
    Computers & Operations Research, Volume 25, Issue 9, Pages 781-791
    September 1998
    Keywords: Data Envelopment Analysis, ranking, selecting variables, multi-criteria decision analysis



    19. Share performance and profit efficiency of banks in an oligopolistic market: evidence from Singapore
    Sing Fat Chu, Guan Hua Lim
    Journal of Multinational Financial Management, Volume 8, Issues 2–3, Pages 155-168
    September 1998
    Keywords: Banks, DEA, Profit efficiency



    18. The impact of liberalization on the productive efficiency of Indian commercial banks
    Arunava Bhattacharyya, C. A. K. Lovell, Pankaj Sahay
    European Journal of Operational Research, Volume 98, Issue 2, Pages 332-345
    16 April 1997
    Keywords: Banking, Data envelopment analysis, Efficiency measurement



    17. DEA/AR profit ratios and sensitivity of 100 large U.S. banks
    Russell G. Thompson, Emile J. Brinkmann, P. S. Dharmapala, M. D. Gonzalez-Lima, Robert M. Thrall
    European Journal of Operational Research, Volume 98, Issue 2, Pages 213-229
    16 April 1997
    Keywords: Data envelopment analysis (DEA), Assurance region (AR), cone ratio (CR), Linked-cone (LC) profit ratio, Multiplier analytic center sensitivity, Banking



    16. Data transformations in DEA cone ratio envelopment approaches for monitoring bank performances
    P. L. Brockett, A. Charnes, W. W. Cooper, Z. M. Huang, D. B. Sun
    European Journal of Operational Research, Volume 98, Issue 2, Pages 250-268
    16 April 1997
    Keywords: Bank performance, Efficiency evaluations, Basel agreement, Risk coverage, Data envelopment analysis



    15. Best practice analysis of bank branches: An application of DEA in a large Canadian bank
    Claire Schaffnit, Dan Rosen, Joseph C. Paradi
    European Journal of Operational Research, Volume 98, Issue 2, Pages 269-289
    16 April 1997
    Keywords: Data Envelopment Analysis, Efficiency, Banking



    14. Target setting: An application to a bank branch network
    C. A. Knox Lovell, Jesús T. Pastor
    European Journal of Operational Research, Volume 98, Issue 2, Pages 290-299
    16 April 1997
    Keywords: Banking, Efficiency measurement, Data envelopment analysis



    13. Service quality and operating efficiency synergies for management control in the provision of financial services: Evidence from Greek bank branches
    Antreas D. Athanassopoulos
    European Journal of Operational Research, Volume 98, Issue 2, Pages 300-313
    16 April 1997
    Keywords: Bank branches, Efficiency, Service quality, Data envelopment analysis, Value judgments



    12. DEA/AR efficiency and profitability of Mexican banks a total income model
    William M. Taylor, Russell G. Thompson, Robert M. Thrall, P. S. Dharmapala
    European Journal of Operational Research, Volume 98, Issue 2, Pages 346-363
    16 April 1997
    Keywords: Data envelopment analysis, Assurance regions, Efficiency/profitability potential, Bank management, Quality-benchmarking



    11. Evaluating the cost-efficiency of the Italian banking system: What can be learned from the joint application of parametric and non-parametric techniques
    Andrea Resti
    Journal of Banking & Finance, Volume 21, Issue 2, Pages 221-250
    February 1997
    Keywords: Efficiency, Data envelopment analysis, Banking, Frontiers

     

    10. Input congestion in loan operations
    Thomas E. Hartman, James E. Storbeck
    International Journal of Production Economics, Volumes 46–47, Pages 413-421
    December 1996
    Keywords: Efficiency, Data envelopment analysis, Leading, Window analysis

     
    9. A comparison of data envelopment analysis and ratio analysis as tools for performance assessment
    E. Thanassoulis, A. Boussofiane, R. G. Dyson
    Omega, Volume 24, Issue 3, Pages 229-244
    June 1996
    Keywords: DEA, performance measurement, efficiency, health service, ratio analysis

     
    8. The technical efficiency of large bank production
    Stephen M. Miller, Athanasios G. Noulas
    Journal of Banking & Finance, Volume 20, Issue 3, Pages 495-509
    April 1996
    Keywords: Technical efficiency, Large banks

     
    7. Banking efficiency in the Nordic countries
    Sigbjørn Atle Berg, Finn R. Førsund, Lennart Hjalmarsson, Matti Suominen
    Journal of Banking & Finance, Volume 17, Issues 2–3, Pages 371-388
    April 1993
    Keywords: -

     
    6. Integrated system design and operational decisions for service sector outlets
    Rajiv D. Banker, Richard C. Morey
    Journal of Operations Management, Volume 11, Issue 1, Pages 81-98
    March 1993
    Keywords: -

     
    5. Bank branch operating efficiency: A comparative application of DEA and the loglinear model
    DI Giokas
    Omega, Volume 19, Issue 6, Pages 549-557
    1991
    Keywords: banking, data envelopment analysis, loglinear estimation, mathematical programming, returns to scale

     
    4. Polyhedral Cone-Ratio DEA Models with an illustrative application to large commercial banks
    A. Charnes, W. W. Cooper, Z. M. Huang, D. B. Sun
    Journal of Econometrics, Volume 46, Issues 1–2, Pages 73-91
    October–November 1990
    Keywords: -

     
    3. An empirical study on measuring operating efficiency and profitability of bank branches
    Muhittin Oral, Reha Yolalan
    European Journal of Operational Research, Volume 46, Issue 3, Pages 282-294
    15 June 1990
    Keywords: Efficiency, productivity, performance evaluation, banking, mathematical programming

     
    2. Measuring the efficiency of service operations: An application to bank branches
    Celik Parkan
    Engineering Costs and Production Economics, Volume 12, Issues 1–4, Pages 237-242
    July 1987
    Keywords: -

     

    1. Bank branch operating efficiency: Evaluation with Data Envelopment Analysis
    H. David Sherman, Franklin Gold
    Journal of Banking & Finance, Volume 9, Issue 2, Pages 297-315
    June 1985
    Keywords: -

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