Data envelopment analysis: a tool of measuring efficiency in banking sector
The present paper examined the review of literature related to measuring relative efficiency of banks using data envelopment analysis (DEA). The efficiency of banks is measure through the ability of the individual bank to maximise output given a certain level of input. By measuring its efficiency, i...
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| Format: | Article |
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Econjournals
2016
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| author | Othman, F. M. Mohd. Zamil, N. A. Rasid, S. Z. A. Vakilbashi, A. Mokhber, M. |
| author_facet | Othman, F. M. Mohd. Zamil, N. A. Rasid, S. Z. A. Vakilbashi, A. Mokhber, M. |
| author_sort | Othman, F. M. |
| collection | ePrints |
| description | The present paper examined the review of literature related to measuring relative efficiency of banks using data envelopment analysis (DEA). The efficiency of banks is measure through the ability of the individual bank to maximise output given a certain level of input. By measuring its efficiency, it can serves as early warning or benchmark of its performance and it can define future improvement in various area such as managerial, technology or socio-economic. DEA is comprises of two basic model that are DEA Charnes-Cooper-Rhodes model with constant return to scale assumption and DEA Banker-Charnes-Cooper model with variable return to scale assumption. In banking industry, DEA is using two approaches that are production or intermediation approach. The former highlights banks as delivering services in the form of transaction and the later assumes banks intermediate funds between surplus units to deficit unit. The study of efficiency in banks with similar economic and political condition is important as banks operate in parallel. |
| first_indexed | 2024-03-05T20:01:46Z |
| format | Article |
| id | utm.eprints-71590 |
| institution | Universiti Teknologi Malaysia - ePrints |
| last_indexed | 2024-03-05T20:01:46Z |
| publishDate | 2016 |
| publisher | Econjournals |
| record_format | dspace |
| spelling | utm.eprints-715902017-11-16T08:35:51Z http://eprints.utm.my/71590/ Data envelopment analysis: a tool of measuring efficiency in banking sector Othman, F. M. Mohd. Zamil, N. A. Rasid, S. Z. A. Vakilbashi, A. Mokhber, M. HG Finance The present paper examined the review of literature related to measuring relative efficiency of banks using data envelopment analysis (DEA). The efficiency of banks is measure through the ability of the individual bank to maximise output given a certain level of input. By measuring its efficiency, it can serves as early warning or benchmark of its performance and it can define future improvement in various area such as managerial, technology or socio-economic. DEA is comprises of two basic model that are DEA Charnes-Cooper-Rhodes model with constant return to scale assumption and DEA Banker-Charnes-Cooper model with variable return to scale assumption. In banking industry, DEA is using two approaches that are production or intermediation approach. The former highlights banks as delivering services in the form of transaction and the later assumes banks intermediate funds between surplus units to deficit unit. The study of efficiency in banks with similar economic and political condition is important as banks operate in parallel. Econjournals 2016 Article PeerReviewed Othman, F. M. and Mohd. Zamil, N. A. and Rasid, S. Z. A. and Vakilbashi, A. and Mokhber, M. (2016) Data envelopment analysis: a tool of measuring efficiency in banking sector. International Journal of Economics and Financial Issues, 6 (3). pp. 911-916. ISSN 2146-4138 https://www.scopus.com/inward/record.uri?eid=2-s2.0-84981743108&partnerID=40&md5=af7f31b792fed9a112406982444ff3b0 |
| spellingShingle | HG Finance Othman, F. M. Mohd. Zamil, N. A. Rasid, S. Z. A. Vakilbashi, A. Mokhber, M. Data envelopment analysis: a tool of measuring efficiency in banking sector |
| title | Data envelopment analysis: a tool of measuring efficiency in banking sector |
| title_full | Data envelopment analysis: a tool of measuring efficiency in banking sector |
| title_fullStr | Data envelopment analysis: a tool of measuring efficiency in banking sector |
| title_full_unstemmed | Data envelopment analysis: a tool of measuring efficiency in banking sector |
| title_short | Data envelopment analysis: a tool of measuring efficiency in banking sector |
| title_sort | data envelopment analysis a tool of measuring efficiency in banking sector |
| topic | HG Finance |
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