scholarly journals Efficiency Measurement on Banking Sector in Bangladesh

2013 ◽  
Vol 61 (1) ◽  
pp. 1-5 ◽  
Author(s):  
Md. Rashedul Hoque ◽  
Md. Israt Rayhan

Nowadays banking sector in Bangladesh plays a considerable role in the economic development and business improvement, in this aspect ranking of banks is vital. In this study, an attempt has been made to rank some of the Bangladeshi Banks. Also, the most efficient bank is identified here. Data Envelopment Analysis is used for this purpose. The data from the annual reports of different banks are used in this study for the purpose of efficiency checking. In Data Envelopment Analysis two types measurement techniques are used – constant returns to scale and variable returns to scale. Since this study attempts to maximize output, that is, the operating profit, so the output oriented Data Envelopment Analysis is used here. The most efficient bank is identified here by the highest efficiency score obtained by that specific bank. Dhaka Univ. J. Sci. 61(1): 1-5, 2013 (January) DOI: http://dx.doi.org/10.3329/dujs.v61i1.15088

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.


Author(s):  
Yinka Oyerinde ◽  
Felix Bankole

A lot of research has been done using Data Envelopment Analysis (DEA) to measure efficiency in Education. DEA has also been used in the field of Information and Communication Technology for Development (ICT4D) to investigate and measure the efficiency of Information and Communication Technology (ICT) investments on Human Development. Education is one of the major components of the Human Development Index (HDI) which affects the core of Human Development. This research investigates the relative efficiency of ICT Infrastructure Utilization on the educational component of the HDI in order to determine the viability of Learning Analytics using DEA for policy direction and decision making. A conceptual model taking the form of a Linear Equation was used and the Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) models of the Data Envelopment Analysis were employed to measure the relative efficiency of the components of ICT Infrastructure (Inputs) and the components of Education (Outputs). Results show a generally high relative efficiency of ICT Infrastructure utilization on Educational Attainment and Adult Literacy rates, a strong correlation between this Infrastructure and Literacy rates as well, provide an empirical support for the argument of increasing ICT infrastructure to provide an increase in Human Development, especially within the educational context. The research concludes that DEA as a methodology can be used for macroeconomic decision making and policy direction within developmental research.


Author(s):  
Efayena, O. Obukohwo ◽  
Enoh H. Olele ◽  
Patricia N. Buzugbe

The study analyses, empirically, the efficiency of the Pharmaceutical sector in Nigeria. Employing a balanced panel of 20 pharmaceutical firms between 2012 and 2016, the paper uses a non-parametric technique (Data Envelopment Analysis) to analyze the firms' efficiency under the constant returns to scale (CRS) and variable returns to scale (VRS) assumptions. The results obtained shows inefficiency in the pharmaceutical sector as it operates under a decreasing return to scale. This calls for an appropriate policy mix to stimulate the efficiency of the pharmaceutical sector in Nigeria by enhancing research and development (R&D) as well as regulations within the sector.


Author(s):  
Ümit Hacıoğlu ◽  
Hasan Dinçer ◽  
Özlem Olgu

The aim of the chapter is to measure the non-interest income based branch efficiency among privately-owned banks in the Turkish banking sector between 2008 and 2012. The chapter is built on the three inputs and three outputs model of bank branch efficiency and empirical results are constructed with the data envelopment analysis (DEA) in the limitation of input-orientated constant returns to scale model. The results demonstrate that all privately-owned banks improve non-interest based efficiency performance by the years and mean efficiency in the sector regularly rises due to the increasing overall competitive factors.


2016 ◽  
Vol 34 (2) ◽  
pp. 47-58
Author(s):  
Andrés Salas-Alvarado

In this study the technical and scale efficiency of Costa Rican banking system is estimated for the 2005-2015 period, through the Data Envelopment Analysis (DEA). The estimations are within the approach of variable returns to scale with slacks developed by Banker, Charnes, and Cooper (1984) and the constant returns to scale approach developed by Charnes, Cooper, and Rhodes (1978). Efficiency scores were estimated annually for each bank to get the average for state banks, private banks, and the whole system. The inputs and outputs considered in the DEA model were defined through the intermediation approach. Through the application of DEA was concluded that a) for the whole system there are no clear efficiency improvements during the period analyzed, b) the most efficient banks were Banco BCT and Banco General, c) private banks were on average more efficient than state banks and d) the goods of net use were, on average, the input with bigger slack.


2018 ◽  
Vol 7 (3.20) ◽  
pp. 339
Author(s):  
Mohd Fahmy-Abdullah ◽  
Basri Abdul Talib

The objective of this study was to measure of technical efficiency, transport manufacturing industry in Malaysia score using the data envelopment analysis (DEA) from 2005 to 2010. The efficiency score analysis used only two inputs, i.e., capital and labor and one output i.e., total of sales. The results shown that the average efficiency score of the Banker, Charnes, Cooper - Variable Returns to Scale (BCC-VRS) model is higher than the Charnes, Cooper, Rhodes - Constant Return to Scale (CCR-CRS) model. Based on the BCC-VRS model, the average efficiency score was at a moderate level and only four sub-industry that recorded an average efficiency score more than 0.50 percent during the period study. The implication of this result suggests that the transport manufacturing industry needs to increase investment, especially in human capital such as employee training, increase communication expenses such as ICT and carry out joint ventures as well as research and development activities to enhance industry efficiency. 


2020 ◽  
Vol 25 (1) ◽  
pp. 4
Author(s):  
Mehdi Karami Khorramabadi ◽  
Majid Yarahmadi ◽  
Mojtaba Ghiyasi

It is considerably important to calculate the cost efficiency in data envelopment analysis for the efficiency evaluation of decision-making units. The present paper develops the classical cost efficiency model in which all the input prices are constant and certain for each decision-making unit, considering undesirable outputs under the semi-disposability assumption. The proposed models are interval and uncertain under the constant returns to scale and also variable returns to scale assumptions, for the easy solution of which, their lower and upper bounds are obtained on the basis of the theorem presented in the text. In order to simulate the proposed models and show their scientific capabilities, additionally, 56 electricity producing thermal power plants in Iran were studied in 2015. Results of the present study show that under both assumptions of constant returns to scale and variable returns to scale, the highest cost efficiency bounds belonged to the combined and steam cycle power plants. Moreover, the average of lower and upper cost efficiency bounds of the power plants under study were 34% and 35%, respectively, in 2015, under the constant returns to scale assumption, and 52% and 54%, respectively, under the variable returns to scale assumption.


2020 ◽  
Vol 23 (2) ◽  
pp. 60-66
Author(s):  
Ahmed Nourani ◽  
Abdelaali Bencheikh

AbstractAlgeria has recently experienced an important agricultural development in terms of gardening in plastic greenhouses thanks to the favourable factors (climatic conditions, etc.). In order to optimize the energy requirements, data from 29 farmers were collected, who qualitatively represent the greenhouse vegetable producers from the most productive sub-provinces of Biskra region (south of Algeria). Considering the various parametric and non-parametric methods for energy consumption optimization, data envelopment analysis is the most common non-parametric method applied. Results showed that the mean radial technical efficiency assumptions of the samples under constant returns to scale and variable returns to scale models were 0.88 and 0.98, respectively. The 51.72% of decision-making units were efficient on the basis of the constant returns to scale model; 79.31% decision-making units were observed efficient on the basis of variable returns to scale model. Calculation of optimal energy requirements for vegetable greenhouse indicated that 108.50 GJ·ha−1 can be saved on machinery (1.38 GJ·ha-1); diesel fuel (4.68 GJ·ha−1); infrastructure (9.35 GJ·ha−1); fertilizers (17.08 GJ·ha−1); farmyard manure (12.05 GJ·ha−1); pesticides (3.93 GJ·ha−1); and electricity (60.03 GJ·ha−1).


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