The study of Commercial Banks' Efficiency Based on Data Envelopment Analysis (DEA) (The Case Study of Bank Saderat in Mazandaran Province of Iran)

Hakimabadie, M. T. G.; Esna-asharie, A.; Ahmadpour, Hadi

The study of Commercial Banks' Efficiency Based on Data Envelopment Analysis (DEA) (The Case Study of Bank Saderat in Mazandaran Province of Iran)

Authors

¹ Faculty member of Mazandaran university

² M.A. in Economics

Abstract

Through this research paper, the efficiency of ١٤١ Mazandaran
branches of Bank Saderat in ٢٠٠٤ is evaluated using Data
Envelopment Analysis which is a linear programming and non
parametric method.
The variants considered here are categorized into two groups
consisting of; inputs (number of staff, terminals and book value of
branches), and outputs (weighted sums of deposits, the average of ١٢
months of private sector facilities (loans), and adjusted deferred
claims.
That hypothesis in which more than ٥٠٪ of bank Saderat branches
are inefficient has been analyzed. There, it is indicated that how the
branches can receive the frontier of efficiency by modifying their
inputs or outputs.
The study shows that ٧٠٪ of branches are inefficient, whereas the
varying return scale is different from the constant return scale.
Misallocation of personnel in branches is known as an important
factor for inefficiency. To Make the branches more efficient, we must
economize on using resources (Inputs) at least to ٣٦٪.

Keywords