Comparative Efficiency of Bulgarian Banks Through DEA

Veselin Hadzhiev

Business & Management Compass, 2013, issue 3, 19-26

Abstract: The need for improving the analysis of banks’ activities and the limitations of conventional methods necessitate the creation and use of new methods of analysis. To this group of new methods there belongs the analysis of comparative efficiency. It is a non-parametric method, based on linear programming. In order to study the operating efficiency of commercial banks in Bulgaria there are used two models of the analysis of comparative efficiency – CCR and BCC. It has been found that one half of the commercial banks are efficient with respect to the variables used. The rest of the commercial banks fall below the efficiency line. The reduction of variables leads to a decrease in the number of efficient commercial banks. That is explained with the variety of goals and policies of bank management thus the removal of variables leads to a change in comparative efficiency.

Keywords: comparative efficiency; banks; model (search for similar items in EconPapers)
JEL-codes: C61 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:vrn:journl:y:2013:i:3:p:19-26

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