Manta, Alina Georgiana; Bădîrcea, Roxana Maria
June 2014
Annals of the University of Craiova, Economic Sciences Series;2014, Vol. 1 Issue 42, p23
Academic Journal
The purpose of this paper is to reveal an alternative method of measuring the banking performance through the banking efficiency. In order to estimate the banking efficiency we have applied the Data Envelopment Analysis - DEA technique. In the analysis we made, we have used the approach of the banking intermediation which supposes that the banks intermediate the funds between the deponents and the debtors with the lowest costs. Therefore, the inputs we will use are: the expenses with the personnel and the expenses with the interests, the outputs: the investments and the credits and the prices of the inputs: the expenses with the personnel reported to the number of employees and the expenses with the interests reported to the volume of the deposits. For the estimation of the DEA model we used the data taken from the financial reports of 11 most important banks in Romania for 2008 - 2011. The data were processed in the DEAP 2.1. program. Therefore, the obtained results can be materialized in the following directions: most of the banks in Romania are inefficient from the cost management perspective; during the crisis, the foreign banks proved to be more inefficient than the local ones on the background of the propagation of the negative effects from the parent-banks; in the case of the smaller banks, one states that they are more efficient than the greater banks because of the fact that the totality of the expenses with the interests and of the expenses with the personnel has not been correlated with the volume of the granted loans and of the investments and because of holding a greater volume of nonperforming loans.


Related Articles

  • The Relative Efficiency of Commercial Banks in Thailand: DEA Approach. Chansarn, Supachet // International Research Journal of Finance & Economics;2008, Issue 18, p53 

    This study aims to examine the relative efficiency of Thai commercial banks during 2003 � 2006 by utilizing Data Envelopment Analysis (DEA). Based on the sample of 13 commercial banks, our findings reveal that the efficiency of Thai commercial banks via operation approach is very high and...

  • The use of DEA in measuring efficiency in Arabian banking. Al-Jarrah, Idries Moh'd // Banks & Bank Systems;2007, Vol. 2 Issue 4, p21 

    The Data Envelopment Analysis Analysis (DEA) approach is used to investigate the cost efficiency levels of banks operating in Jordan, Egypt, Saudi Arabia and Bahrain over 1992-2000. The estimated cost efficiency is further decomposed into technical and allocative efficiency at both variable and...

  • INTERMEDIATION EFFICIENCY AND PRODUCTIVITY OF COMMERCIAL BANKS IN KENYA; A Data Envelopment and Malmquist Productivity Index Analysis. Nasieku, Tabitha; Kosimbei, George; Obwogi, Joseph // Economics & Finance Review;Apr2013, Vol. 3 Issue 2, p1 

    This paper analyses the intermediation efficiency and productivity of Kenyan commercial banks between 2001 and 2011. It is anchored on the research evaluating the intermediation efficiency and productivity of commercial banks in Kenya. The study adopts a non-parametric approach Data Envelopment...

  • EFFICIENCE DES BANQUES EN AFRIQUE : CAS DE L'UEMOA. Dramani, Latif; Ndiaye, Aliou; Niang, Tacko // Studia Universitatis Babes-Bolyai, Oeconomica;2011, Vol. 56 Issue 1, p52 

    This paper addresses the problem of banks efficiency. The methodology revolves around the use of nonparametric technique Data Envelopment Analysis (DEA) to measure different types of efficiency, based on commercial Bank data from 2002 to 2008 for eight member countries of the UEMOA. The results...

  • BANKS IN PORTUGAL: SERVICE PRODUCERS OR FINANCIAL INTERMEDIARIES? Martins, Ana Isabel // Tourism & Management Studies;2010, Issue 6, p131 

    Financial and monetary intermediation have always been the core competencies of banks. However, to balance for the significant reduction in bank intermediation margins in recent years, institutions have promoted the increase of their charges, through the supply of banking services and...

  • Efficiency of Islamic Banks: A Comparative Analysis of MENA and Asian Countries. Abdul Rahman, Abdul Rahim; Rosman, Romzie // Journal of Economic Cooperation & Development;2013, Vol. 34 Issue 1, p63 

    It is crucial for Islamic banks to be efficient in order to withstand competitive pressures and financial crises. This study empirically examines and compares the efficiency of selected Islamic banks in Middle Eastern and North African (MENA) countries (including Gulf Cooperation Countries) and...

  • DEA analysis for a large structured bank branch network. Sevcovic, D.; Halicka, M.; Brunovsky, P. // Central European Journal of Operations Research;2001, Vol. 9 Issue 4, p329 

    Discusses results of Data Envelopment Analysis (DEA) for the assessment of efficiency of a large structured network of bank branches in Slovakia. Factors characterizing branch activities satisfactorily; Description of the DEA model; Computational aspects of the application.

  • Canadian report. Etter, P.H. // Credit World;Mar/Apr97, Vol. 85 Issue 4, p11 

    Reports on the federal scene in Canada. Business owners as secured creditors; Bank profits spark proposals by disgruntled shareholder; Content of the proposals; What the Ottawa's task force on financial services recommends.

  • DEEP POCKETS, DEEP TROUBLES.  // U.S. Banker;May2002, Vol. 112 Issue 5, p12 

    Focuses on the effort of creditors from Enron for banks deals. Emphasis on the deals related to bankrupt energy-trading company; Assessment on the size of losses sustained by the Creditors of Enron; Struggles of Enron in settling the cases filed by creditors and shareholders.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics