Measuring relative performance of banking industry using a DEA and TOPSIS

One of the primary concerns in banking industry is to measure the relative importance of banking industry using popular multi criteria decision making (MCDM) techniques such as data envelopment analysis (DEA) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). In this paper,...

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Main Authors: Mohammad Hemmati, Seyed Abolfazl Dalghandi, Hossein Nazari
Format: Article
Language:English
Published: Growing Science 2013-02-01
Series:Management Science Letters
Subjects:
Online Access:http://www.growingscience.com/msl/Vol3/msl_2012_340.pdf
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author Mohammad Hemmati
Seyed Abolfazl Dalghandi
Hossein Nazari
author_facet Mohammad Hemmati
Seyed Abolfazl Dalghandi
Hossein Nazari
author_sort Mohammad Hemmati
collection DOAJ
description One of the primary concerns in banking industry is to measure the relative importance of banking industry using popular multi criteria decision making (MCDM) techniques such as data envelopment analysis (DEA) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). In this paper, we use these two MCDM techniques to measure the relative efficiencies of 16 private and governmental banks in terms of electronic payment. There are three inputs with DEA methods including the number of issued cards, the number of ATM machines and the number of POSs and there are two outputs including the number of successful ATMs and the number of successful POSs transactions. The proposed study of this paper uses the necessary data of one of Iranian provinces and the results of the implementation of DEA and TOPSIS have indicated that 9 out of 16 banks were efficient. Our study also indicates that mean of relative efficiency for private banks was 82% while this number was 75% for governmental banks.
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spelling doaj.art-1135880bab2241dc9477dbc6e4008cf22022-12-21T18:55:37ZengGrowing ScienceManagement Science Letters1923-93351923-93432013-02-0132499504Measuring relative performance of banking industry using a DEA and TOPSISMohammad HemmatiSeyed Abolfazl DalghandiHossein NazariOne of the primary concerns in banking industry is to measure the relative importance of banking industry using popular multi criteria decision making (MCDM) techniques such as data envelopment analysis (DEA) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). In this paper, we use these two MCDM techniques to measure the relative efficiencies of 16 private and governmental banks in terms of electronic payment. There are three inputs with DEA methods including the number of issued cards, the number of ATM machines and the number of POSs and there are two outputs including the number of successful ATMs and the number of successful POSs transactions. The proposed study of this paper uses the necessary data of one of Iranian provinces and the results of the implementation of DEA and TOPSIS have indicated that 9 out of 16 banks were efficient. Our study also indicates that mean of relative efficiency for private banks was 82% while this number was 75% for governmental banks.http://www.growingscience.com/msl/Vol3/msl_2012_340.pdfBanking industryEfficiencyTOPSISDEA
spellingShingle Mohammad Hemmati
Seyed Abolfazl Dalghandi
Hossein Nazari
Measuring relative performance of banking industry using a DEA and TOPSIS
Management Science Letters
Banking industry
Efficiency
TOPSIS
DEA
title Measuring relative performance of banking industry using a DEA and TOPSIS
title_full Measuring relative performance of banking industry using a DEA and TOPSIS
title_fullStr Measuring relative performance of banking industry using a DEA and TOPSIS
title_full_unstemmed Measuring relative performance of banking industry using a DEA and TOPSIS
title_short Measuring relative performance of banking industry using a DEA and TOPSIS
title_sort measuring relative performance of banking industry using a dea and topsis
topic Banking industry
Efficiency
TOPSIS
DEA
url http://www.growingscience.com/msl/Vol3/msl_2012_340.pdf
work_keys_str_mv AT mohammadhemmati measuringrelativeperformanceofbankingindustryusingadeaandtopsis
AT seyedabolfazldalghandi measuringrelativeperformanceofbankingindustryusingadeaandtopsis
AT hosseinnazari measuringrelativeperformanceofbankingindustryusingadeaandtopsis