Financial industry is facing unprecedented challenges, especially fierce competition between commercial banks, so it is urgent for us to solve a problem of comprehensive analysis and appropriate suggestions for the development of commercial banks. This survey uses a commercial bank's input and output data, provides an overall efficiency ranking of bank branches by calculating through the traditional DEA model(C 2 R), DEA Overlapping Efficiency Model and Weight-restricted DEA model. The experimental results provide the basis for understanding of each branch, which is affiliated to the commercial bank.
Keywords:Bank efficiency, DEA model, Input-output efficiency.
1.IntroductionCommercial banks can assess their strengths and weakness by implementing comprehensive performance evaluation of management. To promote commercial banks' competitiveness, analysis of experimental results will provide insights into assigning the limited financial resources scientifically and rationally to decision-maker. As recognized by all economists in the western theory of economics, both the definition and description of bank efficiency are the contrasting relationship between investment and yield in their business activities. With the deepening of reform and opening up, the financial industry is facing unprecedented challenges, especially between interbank market. The question of how to achieve optimal financial resources for a single unit within the bank is a problem that needs to be addressed. Twenty years after Farrell's seminal work,and building on those ideas, Charnes et al. (1978),proposed data envelopment analysis(DEA) [1]. DEA(data envelopment analysis) Model is a commonly used method for evaluating company's operating efficiency [2]. However, the fact is that each decision unit is maximizing its efficiency rating index [3], which tends to use extreme and unreasonable weight distribution for the input and output indices, the traditional DEA method's result is somewhat unsatisfactory and cannot identify strengths and weaknesses between all the DMU. DEA Overlapping Efficiency Model partially compensates for these shortcomings of the traditional DEA method [4]. Traditional DEA model and DEA Overlapping Efficiency Model are too objective for the efficiency evaluation of commercial banks [5]. This paper provide a weight-restricted DEA model, with more subjective factors of decision ideology and value judgement. Evaluation results can be more approximates the real facts by adding the appropriate weights constraint conditions [6]. The rest of this article is organized as follows. Section 2 describes the experimental dataset of a commercial bank. Section 3 explains the models for bank efficiency and how to calculate the efficiency values of bank branches. In section 4, we show the ranking list, compare our approach results and discuss the possible causes for the ranking results. Finally, we give concluding remarks in Section 5.
2.DatasetsWe used seventeen sub-branches' input-output data of a commercial bank , input data includ...