Estimation of the Cost Efficiency of the Branches of Tejarat Bank in Isfahan Province and Its Affective Factors

Subject Areas : Labor and Demographic Economics

Received: 2015-04-27 Accepted : 2015-04-27 Published : 2009-04-01

Keywords: Efficiency, Cost efficiency, Frontier Production Function, Tejarat Bank,

Abstract :

Regarding the basic role of bank systems in economy of countries, the efficiency of the banking industry has always been at the center of statesmen's attention, and the establishing an efficient network of bank branches is reckoned as one of the main methods for providing efficiency optimization plans at bank level. Based on this, the present paper deals with the estimation of cost efficiency in 128 Branches of Tejarat Bank in Isfahan Province within 2007-2009, with the study of the affective factors of the above mentioned branches cost efficiency using the stochastic frontier analysis, Translog cost function and Maximum Likelihood method. The model used in this research is the inefficiency model of Battese and Coelli (1995). The statistic results from data fitting show that average cost efficiency of the Branches of Tejarat Bank in Isfahan Province in the period under study was 87.61%. Also, cost efficiency seems to be directly related to the ratios of the facilities granted to total asset and pre-tax profits to total assets and reversely related to the ratios of cash assets to total assets and long-term deposits to total deposits of the braches.                                                                                                                                                                                

References:

منابع و مآخذ

-    ابریشمی، حمید، محسن مهرآرا و مریم آجرلو (1387):" بررسی کارایی هزینه­ای در نظام بانکی: مطالعه­ی موردی بانک ملت". پژوهش­نامه­ی اقتصادی، دوره­ی 8، شماره­ی 28، صص.197-173.

-    اسلامی بیگدلی، غلامرضا و محمد کاشانی پور (1383):" مقایسه و ارزیابی روش­های سنجش کارایی شعب بانک و ارائه الگوی مناسب". بررسی­های حساب­داری و حسابرسی، دوره­ی 11، شماره­ی 38، صص. 27-3.

-    امامی میبدی، علی (1379):" اصولاندازه­گیریکاراییوبهره­وری (علمی-کاربردی)". تهران، مؤسسه­ی مطالعات و پژوهش­های بازرگانی.

-    حسینی، سیدشمس الدین و امیررضا سوری (1386):" برآورد کارایی بانک­های ایران و عوامل مؤثر برآن". پژوهش­نامه­ی اقتصادی، دوره­ی 7، شماره­ی 25، صص. 155-127.

-    ختایی، محمود و پژمان عابدی­فر (1379):" تخمین کارایی فنی صنعت بانک­داری در ایران". پژوهش­های اقتصادی ایران، دوره­ی 3، شماره­ی 6، صص. 84-63.

-    رنجبر، همایون، مرتضی سامتی، کیومرث آقایی و شادی باجغلی(1386):" برآورد تابع هزینه مرزی و اندازه­گیری کارایی بانک­های مرکزی (مورد مطالعه ایران و کشورهای منتخب)". فصل­نامه­ی روند، دوره­ی 17، شماره­ی 53، صص.111- 85.

-    نفر، نصرت­الله (1380):" برآورد کارایی فنی نیروی انسانی در صنعت بانک­داری ایران". فصل­نامه­ی پژوهش­ها و سیاست­های اقتصادی، سال نهم، شماره­ی 17، صص. 74-51.

-    هادیان، ابراهیم و آنیتا عظیمی حسینی (1383):" محاسبه کارایی نظام بانکی در ایران با استفاده از روش تحلیل فراگیر داده­ها (DEA)". فصل­نامه­ی پژوهش­های اقتصادی ایران، شماره­ی 20، صص. 25-1.

 

-    Ahmad Mokhtar, H.S., Abdullah, N., & Al-Habshi, Syed M. (2006). Efficiency of Islamic banking in Malaysia: A stochastic frontier approach. Journal of Economic Cooperation, 27 (2), 37-70.

-    Aigner, D.J., & Chu, S.F. (1968).On estimating the industry production function. The American economic review, 58 (4), 826-839.

-    Aigner, D., Lovell, C.A.K., & Schmidt, P. (1977).Formulation and estimation of stochastic frontier production function models. Journal of econometrics, 6, 21-37.

-    Battese, G.E., & Coelli, T.J. (1992). Frontier production functions, technical efficiency and panel data: With application to paddy farmers in India. Journal of productivity analysis, 3 (1-2), 153-169.

-    Battese, G.E., & Coelli, T.J. (1995). A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics, 20 (2), 325-332.

-    Battese, G.E., Heshmati, A., & Hjalmarsson, L. (1998). Efficiency of labor use in the Swedish banking industry: A stochastic frontier approach. CEPA working paper, Department of econometrics, University of New England.

-    Berger, A., & Humphrey, D. (1997). Efficiency of financial institutions: International survey and directions for future research. European journal of operational research, 98 (2), 175-212.

-    Coelli, Tim, Prasada Rao, D.S., & Battese, G.E. (1998). An introduction to efficiency and productivity analysis. Boston, Kluwer Academic Pub.

-    Farrell, M.J. (1957).The Measurement of Productive Efficiency. Journal of theRoyal Statistical Society, 120 (3), 253-290.

-    Fu, X., & Heffernan, Sh. (2007).Cost X-efficiency in China's banking sector. China Economic Review, 18, 35-53.

-    Ilieva, I.S. (2003).Efficiency in the banking industry: Evidence from Eastern Europe. Dissertation submitted in partial fulfillment of the requirements for the degree of doctor of philosophy in the department of economics, New York, Fordham University.

-    Lensink, R., Meesters, A., & Naaborg, I. (2008). Bank efficiency and foreign ownership: Do good institutions matter?. Journal of Banking & Finance, 32, 834-844.   

-    Mester, Loretta J. (1996). A study of bank efficiency taking into account risk-preferences. Journal of banking and finance, 20, 1025- 1045.

-    Srairi, S.A. (2009). Cost and profit efficiency of conventional and Islamic banks in GCC countries. Springer science and business media, 7.

-    Staikouras, Ch., Mamatzakis, E., & Koutsomanoli- Filippaki, A. (2008). Cost efficiency of the banking industry in the South Eastern European region. Int. Fin. markets, Inst. and money, 18, 483- 497.

-    Tulken, H. (1993). On FDH efficiency analysis: Some methodological issues and applications to retail banking, courts, and urban transit. Journal of Productivity Analysis, 4, 179-210.