Banking Performance Evaluation in China Based on Non-radial Super-efficiency Data Envelopment Analysis

Zhao, Hailing; Kang, Sangmok

doi:10.1016/s2212-5671(15)00387-1

Cited by 7 publications

(6 citation statements)

References 5 publications

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“…To overcome this issue, Tone (2001) proposed slack-based measure model (SBM) whose objective function is unit invariant and its value ranged from zero to one. Since then, several efficiency studies in bank sector have been conducted based on the Tone's (2001) model (e.g., Drake & Hall, 2003;Sufian & Kamarudin, 2014;Zhao & Kang, 2015;Yin, Yu, & Huang, 2018;Zha, Liang, Wu, & Bian, 2016;Wang, Hang, Sun, & Zhao;Wang, Huang, Wu, & Liu, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

“…All these features have made the model is more appropriate in evaluating the efficiency of an organization seeking both input reduction and output augmentation. Based on SE-SBM model, limited efficiency studies in bank sector have been introduced (e.g., Chiu et al, 2011;Chiu et al, 2008;Zhao & Kang, 2015). In addition, a new scheme of the SE-SBM model that deals with negative outputs was formed by Lo and Lu (2009), their model has been used to evaluate efficieny of financial companies in Taiwan.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In this paper, we considered three inputs and two outputs. The inputs are: deposits, fixed assets, and capital (Chen et al, 2010;Chiu et al, 2008;Zhao & Kang, 2015). The two outputs are: noninterest income (Chen et al, 2010;Chiu et al, 2008), and investments (Asmild & Matthews, 2012).…”

Section: Data Setmentioning

confidence: 99%

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Efficiency of banks in Malaysia: A super efficiency approach

Kasim

Ramli

Baten

et al. 2019

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The stability of the economic system of a country very much depends on its banking industry. Data Envelopment Analysis (DEA) has been applied widely for measuring efficiency of banks. Limited studies, however, have employed the radial and non-radial DEA models to evaluate efficiency of banks without considering the ranking of the fully efficient banks since those banks have the same efficiency score. Considering the weakness of the radial and non-radial DEA, this paper aims to calculate the banks efficiency of nine commercial banks in Malaysia from 2004 to 2013 by adopting the two-stage of super efficiency slack-based measure (SE-SBM) model. This model can discriminate between the efficient banks and recalculate their efficiency scores. Then, the selected banks were able to be ranked according to their final efficiency scores. Moreover, comparative analyses of the efficiency of the banks and the year-wise efficiency of the selected banks were also conducted. The methodology consists of two stages. In the first stage the SBM model is run to classify efficient and inefficient banks. In the second stage the super efficiency model is run to rank the efficient banks obtained from the first stage by calculating their super efficiency scores. Our empirical results show that: (1) the efficiency status of the banks fluctuated over the examined period, the high number of the efficient banks is achieved in the years 2006 and 2008, while the year 2012 has the lowest number of the efficient banks. (2) the ranking of the banks fluctuated in the studied period. (3) most of the banks are inefficient in terms of their average efficiency scores. This paper has two limitations. First, the paper did not integrate undesirable output, despite it deals with non-interest income. Second, performance evaluation of Malaysian commercial banks was only compared among the Malaysian banks.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Efficiency of banks in Malaysia: A super efficiency approach

Kasim

Ramli

Baten

et al. 2019

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“…With the exception of deposits, there is a general consensus regarding the main categories of inputs and outputs; however, this does not necessarily imply that there is consistency with respect to the specific inputs/outputs used in various studies. For instance, the traditional inputs, along with deposits, are fixed assets, personnel or expenses (Avkiran, 2011; Zao and Kang, 2015). In some papers, we find the use of branches (Kaur and Gupta, 2015; Ulas and Keskin, 2015), loan loss provisions (Drake and Hall, 2003; Tsonas et al , 2015) and equity (Kuosmanen and Post, 2001; Luo, 2003) as supplementary or alternate inputs.…”

Section: Literature Reviewmentioning

confidence: 99%

Estimating the efficiency of Greek banking system during the last decade of world economic crisis

Sompolos

Mavri

2018

BIJ

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Purpose The purpose of this paper is to examine the efficiency of the four largest Greek banking organizations for the period 2004–2014, including both a period of strong economic growth and a period of economic crisis and recession, which is still plaguing the Greek economy and more specifically the Greek banking sector. Design/methodology/approach The study incorporates the application of financial ratio analysis and the data envelopment analysis (DEA) in order to calculate the technical efficiency of Greek financial institutions. More specifically, a two-stage output-oriented DEA model is developed in order to estimate the global efficiency of banks. The banking function is considered as consisting of two stages in series, a service/operational efficiency and a profitability efficiency. In both output-oriented models, methods of constant returns to scale and variable returns to scale were applied. Findings The results show that in terms of operational efficiency, banks started from a low rate of return in 2004, which improved until 2008, which marked the peak of operational efficiency. By 2010, the operating efficiency varied with downward trend until 2012–2013. In terms of profitability efficiency, the image is clearer, since the impact the financial crisis had on bank’s profit efficiency led, by 2012, to a plunge in the average efficiency by 30–40 percent. Originality/value A multi-stage DEA process, input oriented, was used in order to estimate changes in the performance and efficiency of banking system. The period 2004–2014 has not been examined until recently and all previous studies used the output-oriented DEA model.

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“…Globalization has converted the banking industry and, subsequently, the financial system into a vital sector of the economy [46]. Consequently, the efficiency of the banking industry has been a key driver of financial and economic development and growth [41,90,96]. Inefficient banks threaten the stability of the financial system, and banks are under constant pressure to increase their efficiency by adopting efficient banking practices, lowering their costs, improving productivity, and avoiding risky investments [8].…”

Section: Introductionmentioning

confidence: 99%

A common weights model for investigating efficiency-based leadership in the russian banking industry

et al. 2021

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In this race for productivity, the most successful leaders in the banking industry are those with high-efficiency and a competitive edge. Data envelopment analysis is one of the most widely used methods for measuring efficiency in organizations. In this study, we use the ideal point concept and propose a common weights model with fuzzy data and non-discretionary inputs. The proposed model considers environmental criteria with uncertain data to produce a full ranking of homogenous decision-making units. We use the proposed model to investigate the efficiency-based leaders in the Russian banking industry. The results show that the unidimensional and unilateral assessment of leading organizations solely according to corporate size is insufficient to characterize industry leaders effectively. In response, we recommend a multilevel, multicomponent, and multidisciplinary evaluation framework for a more reliable and realistic investigation of leadership at the network level of analysis.

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Banking Performance Evaluation in China Based on Non-radial Super-efficiency Data Envelopment Analysis

Cited by 7 publications

References 5 publications

Efficiency of banks in Malaysia: A super efficiency approach

Efficiency of banks in Malaysia: A super efficiency approach

Estimating the efficiency of Greek banking system during the last decade of world economic crisis

A common weights model for investigating efficiency-based leadership in the russian banking industry

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