Evaluating the financial performance of bank branches

Jesus Pastor, C. Lovell and Henry Tulkens

Annals of Operations Research, 2006, vol. 145, issue 1, 337 pages

Abstract: We evaluate the financial performance of most of the branch offices of a large European savings bank for a recent accounting period. We employ a complementary pair of nonparametric techniques to evaluate their financial performance, in terms of their ability to conserve on the expenses they incur in building their customer bases and providing customer services. We find variation in the ability of branch offices to perform this task, and agreement on the identity of the laggard branches. We then employ parametric techniques to determine that the list of indicators on which their financial performance is evaluated can be reduced without statistically significant loss of information to bank management. Both findings suggest ways in which the bank can increase the profitability of its branch network. Copyright Springer Science+Business Media, LLC 2006

Keywords: Performance indicators; Variable deletion tests; Banking (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10479-006-0038-3 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Evaluating the financial performance of bank branches (2006)
Working Paper: Evaluating the financial performance of bank branches (2006)
Working Paper: Evaluating the financial performance of bank branches (2003)
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:spr:annopr:v:145:y:2006:i:1:p:321-337:10.1007/s10479-006-0038-3

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-006-0038-3

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().