Measuring Bank Performance of Nepali Banks: A Data Envelopment Analysis (DEA) Perspective
The aim of this study is to develop a performance model for measuring relative efficiency and potential improvement capabilities of Nepali banks by scrutinizing intermediation aspects. For measuring the efficiency and performance, this paper uses a relatively new frontier approach known as Data Env...
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Format: | Article |
Language: | English |
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EconJournals
2012-12-01
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Series: | International Journal of Economics and Financial Issues |
Online Access: | https://econjournals.com/index.php/ijefi/article/view/327 |
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author | Karan Singh Thagunna Shashank Poudel |
author_facet | Karan Singh Thagunna Shashank Poudel |
author_sort | Karan Singh Thagunna |
collection | DOAJ |
description |
The aim of this study is to develop a performance model for measuring relative efficiency and potential improvement capabilities of Nepali banks by scrutinizing intermediation aspects. For measuring the efficiency and performance, this paper uses a relatively new frontier approach known as Data Envelopment Analysis (DEA). The paper uses two basic DEA models to fulfill its objectives. This paper seeks to measure and analyze the efficiency levels of banks in Nepal during 2007-08 to 2010-11. The study reveals that efficiency level is relatively stable and has increased on overall. Additionally, it also breaks down the overall efficiency of banks into technical and scale efficiency. This study found no significant relationship with efficiency level and ownership structure of banks and there were no notable differences in the efficiency levels of banks according to their asset size.
Keywords: Nepal, Data Envelopment Analysis, Bank Performance, Efficiency, Technical Efficiency, Scale Efficiency
JEL Classifications: C51; C61; G21
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first_indexed | 2024-04-10T11:47:38Z |
format | Article |
id | doaj.art-ce21147cd20941b38a81c341803b8798 |
institution | Directory Open Access Journal |
issn | 2146-4138 |
language | English |
last_indexed | 2024-04-10T11:47:38Z |
publishDate | 2012-12-01 |
publisher | EconJournals |
record_format | Article |
series | International Journal of Economics and Financial Issues |
spelling | doaj.art-ce21147cd20941b38a81c341803b87982023-02-15T16:17:16ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382012-12-0131Measuring Bank Performance of Nepali Banks: A Data Envelopment Analysis (DEA) PerspectiveKaran Singh ThagunnaShashank Poudel The aim of this study is to develop a performance model for measuring relative efficiency and potential improvement capabilities of Nepali banks by scrutinizing intermediation aspects. For measuring the efficiency and performance, this paper uses a relatively new frontier approach known as Data Envelopment Analysis (DEA). The paper uses two basic DEA models to fulfill its objectives. This paper seeks to measure and analyze the efficiency levels of banks in Nepal during 2007-08 to 2010-11. The study reveals that efficiency level is relatively stable and has increased on overall. Additionally, it also breaks down the overall efficiency of banks into technical and scale efficiency. This study found no significant relationship with efficiency level and ownership structure of banks and there were no notable differences in the efficiency levels of banks according to their asset size. Keywords: Nepal, Data Envelopment Analysis, Bank Performance, Efficiency, Technical Efficiency, Scale Efficiency JEL Classifications: C51; C61; G21 https://econjournals.com/index.php/ijefi/article/view/327 |
spellingShingle | Karan Singh Thagunna Shashank Poudel Measuring Bank Performance of Nepali Banks: A Data Envelopment Analysis (DEA) Perspective International Journal of Economics and Financial Issues |
title | Measuring Bank Performance of Nepali Banks: A Data Envelopment Analysis (DEA) Perspective |
title_full | Measuring Bank Performance of Nepali Banks: A Data Envelopment Analysis (DEA) Perspective |
title_fullStr | Measuring Bank Performance of Nepali Banks: A Data Envelopment Analysis (DEA) Perspective |
title_full_unstemmed | Measuring Bank Performance of Nepali Banks: A Data Envelopment Analysis (DEA) Perspective |
title_short | Measuring Bank Performance of Nepali Banks: A Data Envelopment Analysis (DEA) Perspective |
title_sort | measuring bank performance of nepali banks a data envelopment analysis dea perspective |
url | https://econjournals.com/index.php/ijefi/article/view/327 |
work_keys_str_mv | AT karansinghthagunna measuringbankperformanceofnepalibanksadataenvelopmentanalysisdeaperspective AT shashankpoudel measuringbankperformanceofnepalibanksadataenvelopmentanalysisdeaperspective |