Evaluate the performance of bank branches using the control approach in analyzing the data cover weight

Subject Areas : Financial engineering

mahnaz Ahadzadeh Namin ¹ , elaheh khamseh ^{2 *} , Farzaneh Mohamadi ³

1 - Department of mathematics, Islamic Azad university, Tehran, Iran
2 - Department of Mathematics, Shahr-e-Qods branch, Islamic Azad University, Tehran, Iran
3 - Department of management, Islamic Azad university, Shahr-e-Qods Branch, Tehran, Iran.

Received: 2018-04-25 Accepted : 2018-07-23 Published : 2019-09-23

Keywords: Data envelopment analysis, performance, Weight Constraints, Bank Class 1 Branches,

Abstract :

DEA-based methods for assessing the effectiveness of data envelopment analysis (DEA), in which the input and output weights are limited, has the ability of bank branches to use unlimited weights that are consistent with exaggerated judgments, adjusted prices, taking into account the risk associated with operating costs and costs Non-operational. In this paper, we evaluate the performance of first-class branches of a commercial bank in Iran using the weight limitation model in data envelopment analysis. Firstly, the important indicators for assessing the performance of bank branches were identified according to previous studies and then, according to the opinion of the banking experts and data envelopment analysis, to evaluate the efficiency of the first grade bank branches, which include two input indicators and four output indicators, will be finalized. After collecting information about 40 first-class branches of the bank in two half-yearly years in 1395, the DEA model will be evaluated without any restrictions on the first grade bank branches. This will also be done with limited DEA models. Finally, using descriptive statistics and statistical tests, we will show that the applied weight limit improves the performance of the performance of first-class bank branches.