Efficiency, size, benchmarks and targets for bank branches : an application of data envelopment analysis

• Type: Article in International Scientific Journal
• Date: 1999

Authors

A. S. Camanho (Author) FEUP; R. G. Dyson (Author) Other

Journal

Title: Journal of the Operational Research Society

Vol. 50 No. 9

Pages: 903-915

ISSN: 0160-5682

Publisher: Taylor & Francis

Indexing

ISI Web of Science

Scopus - 83 Citations

INSPEC

COMPENDEX

Scientific classification

FOS: Engineering and technology > Other engineering and technologies

CORDIS: Physical sciences > Mathematics > Applied mathematics > Operations research

Other information

Authenticus ID: P-008-NG4

DOI: 10.2307/3010188

Abstract (EN): This paper describes an application of data envelopment analysis (DEA) to the performance assessment of Portuguese bank branches. The analysis shows how DEA can complement the profitability measure currently used at the bank. The use of an efficiency-profitability matrix enabled the characterisation of the branches' performance profile. Consistent with the bank's development objectives, the analysis focused on the relation between branch size and performance. Two alternative target setting strategies were explored. One eliminates pure technical inefficiencies by focusing on the selection of appropriate benchmarks. The other attains the branches' most productive scale size through the elimination of scale inefficiencies, with minimal changes to branches' scale size.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 13