Measurement of efficiency in Iranian commercial banks and its relation with structural and financial dimension

Subject Areas : Futurology

Reza shabahang ¹ , Hamid Borhani ²

1 - ندارد
2 - ندارد

Received: 2015-05-13 Accepted : 2015-05-13 Published : 1998-06-22

Keywords:

Abstract :

There is an increasing role for the banking industry in the economy of societies and lack of efficiency and unhealthiness of banks and their vuluerability’ will damage the wliote economy of the country. Therefore, considering the importance banking sector and relying in the experience of the banking system researcher, the subject of measurement of efficiency in Iranian commercial harlcing has been chosen for this study. Here, white measuring the efficiency, its with some of structural and financial variabies has been studies. The beginning of research into efficiency can be related to the studies of Adam Smith. After the end of the second world war, necessity of thriftimess in order to rebuild the damage caused by the war, did attract the study of the researchers in the subject of efficiency. Most of the research in the subject of efficiency in the banking industry was made during the 1980. In this research two different methodologies have been used. I. Parametric Methodology which is based on econometric models of with assumption of special function for preduction and expeusts, estimates the level of inefficiency based on variation from standard expenses. 2-Non parometric Methodology-which by using linear programming will determine the level of efficiency or inefficiency either directly try using the models or indirectly by calculating the minimumcpossible expenditure. There are different description given for efficiency and the one which is used for this research.