The cost efficiency of Greek cooperative banks: an application of two-stage data envelopment analysis

2011 ◽  
Vol 5 (1) ◽  
pp. 34 ◽  
Author(s):  
Fotios Pasiouras ◽  
Emmanouil Sifodaskalakis ◽  
Constantin Zopounidis
Author(s):  
Iveta Palecková

The aim of the paper is to estimate the cost efficiency of the Czech and Slovak commercial banks within the period 2010-2014. For empirical analysis the Data Envelopment Analysis input-oriented model with variable returns to scale is applied on the data of the commercial banks. The intermediation approach is adopted to define the inputs and outputs. The Czech commercial banks are more cost efficient than Slovak commercial banks. The development of average cost efficiency is similar in the Czech and Slovak banking industry. The most efficient Czech banks are Ceská sporitelna and Sberbank in the Czech banking sector, the most efficient Slovak bank is Privatbanka with 100% efficiency.


2015 ◽  
Vol 22 (1) ◽  
pp. 125-140
Author(s):  
Vinh Nguyen Thi Hong

The paper aims at exploring the relationship between bad debt and cost efficiency in Vietnamese commercial banks in the years 2007 – 2013. The research includes two stages: (i) Measuring the cost efficiency of banks by non-parameter Data Envelopment Analysis (DEA) method suggested by Coelli (2005); and (ii) Applying the Tobit model to identify two-way effects of bad debt and bank cost efficiency. The results show that the cost efficiency in Vietnamese commercial banks is 52.6% and there exists a direct relationship between bad debt and cost efficiency.


2019 ◽  
Vol 69 (3) ◽  
pp. 445-466
Author(s):  
Iveta Paleckova

The aim of the paper is to estimate cost efficiency and its determinants of the Czech and Slovak commercial banks within the period of 2005–2015. In this paper two-stage Data Envelopment Analysis (DEA) is used. In the first stage, I estimate the relative cost efficiency applying the input-oriented model with variable return to scale and find that the Czech banks were more cost efficient than the Slovak banks. The main reason of cost inefficiency is the excess of clients' deposits in the banks' balance sheet. In the second stage, I use the panel data analysis and estimate the determinants of cost efficiency in the two countries. I choose 8 bank-specific and macroeconomic factors that influence cost efficiency. The results show that the larger banks with higher liquidity risk and with a lower value of the net interest margin were more efficient. It confirms the reason of inefficiency determined from the DEA model. Banks were highly cost efficient during the economic expansion with a lower value of the inflation rate.


Author(s):  
N.A. C.Azhar ◽  
M.A. Mansor ◽  
S.A. Rusdan ◽  
S.N.M. Saffe

Nowadays, the growth of industry can be seen as a nature of the world. Each company race again each other to increase productivity to produce new, high quality and product that fulfil customer demand. One can achieve the Key Performance Indicator (KPI) or targeted goal but without considering the cost, manpower, time or others elements is inefficient toward productivity. Upgrade production line in manufacturing industry needs huge investment to come out with good performance. The company can receive Return of Investment (ROI) and save more money from paying labor salary and increase productivity. However, the company also may have the risk of losing their money from the investment done. In this research, we studied the effectiveness of production line that equipped with automation usage to determine the productivity and quality of the product produced. We apply Data Envelopment Analysis (DEA) to measure efficiencies of the production line where DEA is one of an excellent tool that can evaluate efficiencies and have been using widely in many sectors. The model that will be used in this study is Two-Stage Network DEA. As a case study, this research focuses on the production line that producing a product with a high and continues demand to observe how the investment on automation can give good return or otherwise.


2015 ◽  
Vol 17 (4) ◽  
pp. 457-480 ◽  
Author(s):  
Rafika Rahmawati

Entering the ASEAN Economic Community (AEC) in 2015, the Islamic banking in Indonesia is expected to have better performance to compete sustainably with local banks and foreign. The performance of the banks using the cost efficiency approach with a focus on two inputs (cost of fund and cost of labor) and the two outputs (total financing and owned securities). Using Stochastic Frontier Approach (SFA) and Data Envelopment Analysis (DEA) on Islamic Banks during the period of January 2010 to December 2013, the result shows that the level of efficiency of the Islamic banks in Indonesia is not optimal. Our calculation shows different result for both method (SFA and DEA), where the highest efficiency levels using SFA methodis Bank Mega Syariah, while with the DEA method is Bank Muamalat Indonesia. Leaving some option of strategies to improve their cost efficiency; this includes increasing their assets, increasing deposits, and cut cost the unnecessarily cost. More strategy includes product innovation, reducing the salary of the board of directors, and put the funds in profitable portfolio. For the authorities, this paper has demonstrated the use of frontier approach as good alternative in assessing the performance of the banks.


2020 ◽  
Vol 54 (6) ◽  
pp. 1775-1791
Author(s):  
Nazila Aghayi ◽  
Samira Salehpour

The concept of cost efficiency has become tremendously popular in data envelopment analysis (DEA) as it serves to assess a decision-making unit (DMU) in terms of producing minimum-cost outputs. A large variety of precise and imprecise models have been put forward to measure cost efficiency for the DMUs which have a role in constructing the production possibility set; yet, there’s not an extensive literature on the cost efficiency (CE) measurement for sample DMUs (SDMUs). In an effort to remedy the shortcomings of current models, herein is introduced a generalized cost efficiency model that is capable of operating in a fuzzy environment-involving different types of fuzzy numbers-while preserving the Farrell’s decomposition of cost efficiency. Moreover, to the best of our knowledge, the present paper is the first to measure cost efficiency by using vectors. Ultimately, a useful example is provided to confirm the applicability of the proposed methods.


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