Benchmarks of the Efficiency of Bank Branches

Christiana V. Zenios, Stavros Zenios, Kostas Agathocleous and Andreas C. Soteriou
Additional contact information
Christiana V. Zenios: Treasury Department, Bank of Cyprus, PO Box 1472 Nicosia, Cyprus
Kostas Agathocleous: Organization and Methods Division, Bank of Cyprus
Andreas C. Soteriou: Department of Public and Business Administration, University of Cyprus, PO Box 20537, CY 1678, Nicosia Cyprus

Interfaces, 1999, vol. 29, issue 3, 37-51

Abstract: The Bank of Cyprus commissioned a study of the efficiency penalties paid by its branches operating in different environments. Bank staff and faculty members of the University of Cyprus jointly developed a data envelopment analysis (DEA) model that was used (1) to provide benchmarks on the relative efficiency of the bank's branches, (2) to provide guidelines for improvement to management, and (3) to isolate the effects of the environment on branch efficiency. The analysis showed that tourist branches were on average more efficient than urban branches during the peak tourist season. The DEA model was also used to benchmark seasonality effects. The analysis revealed branch resource underutilization, which depends on the season. The bank uses the DEA model developed to establish policy guidelines and to provide support for operational decisions toward performance improvement.

Keywords: organizational studies; effectiveness/performance (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://dx.doi.org/10.1287/inte.29.3.37 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:29:y:1999:i:3:p:37-51

Access Statistics for this article

More articles in Interfaces from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().