Assessing Bank Performance Using Dynamic SBM Model

Chia-Nan Wang, Quoc-Chien Luu, Thi-Kim-Lien Nguyen and Jen- Der Day
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Chia-Nan Wang: Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan
Quoc-Chien Luu: Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan
Thi-Kim-Lien Nguyen: Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan
Jen- Der Day: Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan

Mathematics, 2019, vol. 7, issue 1, 1-13

Abstract: Global economic growth has led banks to expand their operations all over the world. The purpose of this research was to understand the efficiency of 18 large bank from all over the world during the period from 2013 to 2017. The performance was estimated by a dynamic slacks-based measure (SBM) model in data envelopment analysis (DEA). This model could be solved using inputs, outputs, and links. The banks variables were considered as follows: Assets, capitalization, and liabilities as inputs; revenue as output; and net interest income as a good link. The final empirical results exhibit the efficiency for each term, and the overall score. The data analysis recommends a feasible solution to refine inefficient terms based on the projections (slacks). This study visually observed the proficiency of the banking industry to equip enterprises with the best choice for their finances.

Keywords: large bank company; dynamic SBM model; data envelopment analysis (DEA); efficiency; projection (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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