APPLICATION OF DEA METHODOLOGY IN MEASURING EFFICIENCY IN THE BANKING SECTOR
Keywords:
Banks, DEA, business efficiency, super efficiency, BCG matrix.Abstract
The most important aspect of any business is efficiency. The goal is to achieve greater outputs with lower inputs, or to use the available inputs to the maximum. In this paper, the use of DEA technique will be illustrated in case of measuring operation efficiency of the banking sector in Serbia, which currently has 33 banks. The efficiency of banks will be measured using two models with different input-output indicators, followed by a comparative analysis of the results using the BCG matrix. Banks are ranked according to their efficiency, and the similarities and differences that were observed in the study were commented.
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References
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3. Bulajić, M., Savić, G., Savić, S. (2011): DEA approach to ranking of the banks in Serbia, SYM-OP-IS-2011, XXXVIII Simpozijum o operacionim istraživanjima Zbornik radova, Univerzitet u Beogradu, Ekonomski fakultet, str. 134-137.
4. Fries, S., Taci, A. (2004): Cost Efficiency of Banks in Transition: Evidence from 289 Banks in 15 Post-Communist Countries, Journal of Banking and Finance, vol. 29, pp. 55-81.
5. Guzowska, M., Kisielewska, M., Nellis, J., Zarzecki, D. (2004): Efficiency of the Polish Banking Sector – Assessing the Impact of Transformation, Data Envelopment Analysis and Performance Management, editors: Emrouznejad, A., Podinovski, V., Aston Business School, Aston University, pp. 163-170.
6. Howland, M., Rowse, J. (2006): Measuring Bank Branch Efficiency Using Data Envelopment Analysis: Managerial and Implementation Issues, INFOR – Information systems and operational research, vol. 44(1), Ottawa, pp. 49-64.
7. Jermić, I., Vujčić, B. (2002): Efficiency of Banks in Croatia: A DEA Approach, Working Papers W-7, Croatian National Bank, Comparative Economic Studies, no. 44(2002), pp. 169-193.
8. Mukherjee, A., Nath, P., Nath Pal, M. (2002): Performance benchmarking and strategic homogeneity of Indian banks, International Journal of Bank Marketing, vol. 20(3), pp.122–139.
9. Mihajlović, N., Bulajić, M., Savić, G., (2009): Ranking of banks in Serbia, Yugoslav journal of operational research, vol. 19(2), pp. 323-334.
10.Milind, S. (2003): Efficiency of banks in a developing economy: the case of India, European Journal of Operational Research, Vol. 148(2003), pp. 662–671.
11.Mohamed, M. (2006): Modelling the efficiency of GCC banks: a data envelopment analysis approach, International Journal of Productivity and Performance Management, Vol. 56(7), pp. 623–643.
12.Şakar, B. (2006): A Study on Efficiency and Productivity of Turkish Banks In Istanbul Stock Exchange using Malmquist DEA, Journal of American Academy of Business, vol. 8(2), pp. 145-155.
13. Wu, D., Yang, Z., Liang, L. (2006): Using DEA-neural network approach to evaluate branch efficiency of a large Canadian bank, Expert Systems with Applications -Elsevier, vol. 31(1), pp. 108-115.
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15.http://mat.gsia.cmu.edu/classes/QUANT/NOTES/chap12.pdf
16.http://as.nida.ac.th/ornet/conf04/OR-CRN_lecture/sowanee.pdf
17.http://en.wikipedia.org/wiki/Growth-share_matrix
18.http://en.wikipedia.org/wiki/Data_envelopment_analysis
19.http://www.wiwi.uni-jena.de/Mikro/pdf/ems.pdf
20.http://mfles.pl/en/index.php/BCG_growth-share_matrix
21.http://thinkserbia.wordpress.com/2008/12/12/bcg-matrica-osnove-strategijeproizvodnog-portfolija/
22.http://www.naslovi.net/2011-04-19/beta/dobitak-banka-2010-veci-za-27-odsto/2485562
23.http://www.decisionsciences.org/decisionline/vol31/31_3/31_3pom.pdf
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Published
2013-12-31
How to Cite
Maletić, R., Kreća, M., & Maletić, P. (2013). APPLICATION OF DEA METHODOLOGY IN MEASURING EFFICIENCY IN THE BANKING SECTOR. Ekonomika Poljoprivrede, 60(4), 843–855. Retrieved from https://ea.bg.ac.rs/index.php/EA/article/view/423
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Review articles
