scholarly journals An Evaluation of the Technical Efficiency of the Selected Commercial Banks with the Usage of the CCR-DEA Model under the Conditions of Acquisitions in the Banking Sector

2020 ◽  
Vol 54 (1) ◽  
pp. 77
Author(s):  
Anna Pyka
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Linear Form ◽  
Commercial Banks ◽  
Banking Sector ◽  
Data Envelopment ◽  
Dea Model ◽  
The Impact ◽  
Ccr Model

<p>The aim of this article is to evaluate the technical efficiency of the chosen commercial banks, which in the years 2014–2016 were participants in acquisitions in the banking sector, with the usage of the Data Envelopment Analysis (DEA) model. The DEA model was modified through reshaping the linear form using the Charnes, Cooper, and Rhodes (CCR) model, which is aimed at expenditures. Particular attention was paid to the impact of acquisitions in the banking sector on the improvement or deterioration of the technical efficiency of banks that act as acquiring banks.</p>

Global Financial Crisis and Banking Sector Efficiency: The Indian Perspective

2014 ◽  
Vol 1 (1) ◽  
pp. 90-109
Author(s):  
Seema Garg
Keyword(s):  
Data Envelopment Analysis ◽  
Financial Crisis ◽  
Commercial Banks ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Data Envelopment ◽  
Crisis Period ◽  
International Financial Crisis ◽  
Indian Banks ◽  
The Impact

Banks play a crucial role in developing and least developed economies by facilitating in trade finance. Banks established an important linkage in international trade by guaranteeing international payments and thereby reducing the risk of trade transactions. The Banks in India has witnessed a significant growth, specialization and diversification since the initiation of financial sector reforms in 1991and further slowdown in the economy as a result of global financial crisis in 2008-2009. This study examines the performance of Indian banks using data envelopment analysis. Though, there are large number of literature have been published on banking efficiency, This is an attempt to investigate the impact of global financial crisis on performance of Indian banking sector. The sole objective of this study is to exhibit, utilizing empirical data, the quantum to which the global financial crisis had an impact on the performance of the Indian banking industry. This study gives a comparative empirical analysis of the technical efficiency of Indian commercial banks during pre and post crisis period covering 2005-2012 using non parametric technique i.e. Data Envelopment Analysis (DEA). This period is consisting of pre and post global crisis period which is characterized by far reaching experience of crisis period (2008-2009) and its impact on the efficiency of the Indian banking sector. Overall, the results reveal that the effect of international financial crisis on the Indian banks has not been significant. Instead, the analysis reveals there is a statistically insignificant improvement in the efficiency of Indian banks’ following international financial crisis. Furthermore, the paper shows that the commercial banks have a high degree of resilience and stability.

scholarly journals IS THE EFFICIENCY OF BANKS DEGENERATING DUE TO THE MOUNTING OF NON-PERFORMING ASSETS? AN EMPIRICAL INVESTIGATION USING DEA

2020 ◽  
Author(s):  
Sudarshan Maity ◽  
Tarak Nath Sahu
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Banking Sector ◽  
Empirical Investigation ◽  
Banking System ◽  
Data Envelopment ◽  
Upward Trend ◽  
Using Data ◽  
Asset Quality ◽  
Ccr Model

Indian banking system is saddled with bad loans which have resulted in huge losses. Profitability remains a concern due to the rise of NPAs. Investors should not expect high reporting profits from banks due to the ascending provision of the NPAs. Banks are not performing well and they may not be much efficient due to the rise of NPAs daily. Using data envelopment analysis, the present study intends to assess technical efficiency of banks. As the requirement of homogeneity is fulfilled, the input oriented CCR model is applied. The study finds that the number of efficient banks has shortened and the average overall technical efficiency of selected banks moves downward throughout the study period. It also reveals that the inefficiency is mostly due to the upward trend of NPAs. Asset quality plays the most crucial role toward the performance of banking sector. Thus, banks and regulators should control the upward trend of NPAs to enhance the efficiency level.  

scholarly journals Cost efficiency of the Czech and Slovak banking sectors: an application of the data envelopment analysis

2016 ◽  
Author(s):  
Iveta Palecková
Keyword(s):  
Data Envelopment Analysis ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Cost Efficient ◽  
The Cost ◽  
Variable Returns To Scale

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.

A common-weights approach for efficiency evaluation in fuzzy data envelopment analysis with undesirable outputs: Application in banking industry

2020 ◽  
Vol 39 (5) ◽  
pp. 7705-7722
Author(s):  
Mohammad Kachouei ◽  
Ali Ebrahimnejad ◽  
Hadi Bagherzadeh-Valami
Keyword(s):  
Data Envelopment Analysis ◽  
Performance Management ◽  
Banking Industry ◽  
Evaluation Process ◽  
Fuzzy Arithmetic ◽  
Data Envelopment ◽  
Fuzzy Data ◽  
Undesirable Outputs ◽  
Dea Model ◽  
The Impact

Data Envelopment Analysis (DEA) is a non-parametric approach based on linear programming for evaluating the performance of decision making units (DMUs) with multiple inputs and multiple outputs. The lack of the ability to generate the actual weights, not considering the impact of undesirable outputs in the evaluation process and the measuring of efficiencies of DMUs based upon precise observations are three main drawbacks of the conventional DEA models. This paper proposes a novel approach for finding the common set of weights (CSW) to compute efficiencies in DEA model with undesirable outputs when the data are represented by fuzzy numbers. The proposed approach is based on fuzzy arithmetic which formulates the fuzzy additive DEA model as a linear programing problem and gives fuzzy efficiencies of all DMUs based on resulting CSW. We demonstrate the applicability of the proposed model with a simple numerical example. Finally, in the context of performance management, an application of banking industry in Iran is presented for analyzing the influence of fuzzy data and depicting the impact of undesirable outputs over the efficiency results.

EFFICIENCY AND PRODUCTIVITY CHANGE IN FIELD CROP AND MILK FARMS IN LUBLIN PROVINCE IN 2014-2016

2018 ◽  
Vol XX (1) ◽  
pp. 137-142
Author(s):  
Alina Syp ◽  
Dariusz Osuch
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Dairy Farms ◽  
Productivity Change ◽  
Data Envelopment ◽  
Field Crop ◽  
Dea Model ◽  
Malmquist Indices ◽  
Efficiency And Productivity ◽  
Efficiency Indicators

The aim of the study was assessment of efficiency and productivity of farms in the Lublin province in the years 2014-2016. The analysis was based on the Data Envelopment Analysis (DEA) model oriented on inputs and Malmquist indices with its components. The calculations were made for medium-sized field and dairy farms that continuously collected data for the FADN system during the period under consideration. In our research all efficiency indicators for dairy farms were larger than for field crop farms. In the years 2014-2016, the average technical efficiency of dairy farms was 0.752, which means that in those farms it is possible to reduce inputs on average by 25% and the value of production will remain at the same level. In the case of field crop farms, inputs should be limited by 33%. The applied decomposition of calculated Malmquist indices allowed to define what factors influenced changes in productivity.

Impact of Bank Operational Efficiency Using a Three-Stage DEA Model

2014 ◽  
Vol 3 (4) ◽  
pp. 32-50 ◽  
Author(s):  
Mu-Shun Wang ◽  
Chihuang Lin
Keyword(s):  
Technical Efficiency ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Ordinary Least Squares ◽  
Capital Adequacy ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Financial Industry ◽  
Dea Model ◽  
The Impact

In this study the authors use a three-stage sequential technique to develop a Data Envelopment Analysis (DEA) model for examining a bank's technical efficiency index. Internal risk and environmental risk are incorporated into this model to accommodate the well-known BASEL III Accord (required capital adequacy ratio in the financial industry) and to ensure the amount of derivatives turnover ratio is at the level defined by industry best-practices. Information is obtained from 34 Taiwanese commercial banks for the period from 2008 to 2011 following the global financial crisis. The Malmquist total factor productivity index (TFP) is also employed to measure the impact of changes in productivity on the panel data. Empirical results derived from the DEA approach show a gain in technical efficiency and scale efficiency in the industry after adjusting the slack variables when using the corrected ordinary least squares (COLS) regression model. The results indicate that commercial banks need to diversify to increase their market share when dealing with derivatives which are associated with higher risk. The Balk's Malmquisit TFP index shows a decrease in bank productivity and improvement in pure technical efficiency. In this study the authors found that after risk-adjustment there was a distinct inefficient unit decrease and but a marginal unit increase in efficiency.

Determinants of Efficiency in the Malaysian Banking Sector: Evidence from Semi-parametric Data Envelopment Analysis Method

2016 ◽  
Vol 4 (2) ◽  
pp. 151-172 ◽  
Author(s):  
Fadzlan Sufian
Keyword(s):  
Data Envelopment Analysis ◽  
Banking Sector ◽  
Productive Efficiency ◽  
Data Envelopment ◽  
Panel Regression ◽  
Analysis Method ◽  
Bank Efficiency ◽  
Panel Regressions ◽  
Parametric Data ◽  
The Impact

This article follows Simar and Wilson’s (2007 , Journal of Econometrics, 136(1), 31–64) two-stage procedure to analyse the efficiency of the Malaysian banking sector. In the first stage, we employ the data envelopment analysis (DEA) method to compute the efficiency of individual banks during the period 1999–2008. We then use panel regressions to examine the impact of ownership on bank efficiency while controlling for the potential impacts of contextual variables. The DEA results indicate an increase in efficiency over the sample period. The results from the panel regression suggest that productive efficiency is positively related to bank size, capitalization and foreign ownership. On the other hand, the publicly listed and government-owned banks have been relatively inefficient in their intermediation function.

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