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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Main Authors: Karan Singh Thagunna, Shashank Poudel
Format: Article
Language:English
Published: EconJournals 2012-12-01
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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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