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Assessing the efficiency in operations of a large Greek bank branch network adopting different economic behaviors

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  • Giokas, Dimitris I.
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    Abstract

    This paper reports on an assessment of the branches of a Greek bank in terms of their performance in three different dimensions: their efficiency in managing the economic record of the branches, their efficiency in meeting the demand for transactions with customers and their efficiency in generating profits. From a methodological point of view the paper employs the non-parametric method Data Envelopment Analysis. Furthermore, branches are assessed using a loglinear deterministic frontier method, in order to examine the concordance of efficiency rating between two models. Small differences were found in the distribution of efficiency estimates. In all cases, the results indicated that there is the scope for substantial efficiency improvements. The most useful information we can provide to bank management is the similar insights of the worst performing branches, as all models identify essentially the same -- low performing branches in the bank network.

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    Bibliographic Info

    Article provided by Elsevier in its journal Economic Modelling.

    Volume (Year): 25 (2008)
    Issue (Month): 3 (May)
    Pages: 559-574

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    Handle: RePEc:eee:ecmode:v:25:y:2008:i:3:p:559-574

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    Web page: http://www.elsevier.com/locate/inca/30411

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    References

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    Cited by:
    1. Halkos, George & Tzeremes, Nickolaos, 2010. "Measuring the effect of virtual mergers on banks’ efficiency levels:A non parametric analysis," MPRA Paper 23696, University Library of Munich, Germany.
    2. Paradi, Joseph C. & Rouatt, Stephen & Zhu, Haiyan, 2011. "Two-stage evaluation of bank branch efficiency using data envelopment analysis," Omega, Elsevier, vol. 39(1), pages 99-109, January.
    3. Paradi, Joseph C. & Zhu, Haiyan, 2013. "A survey on bank branch efficiency and performance research with data envelopment analysis," Omega, Elsevier, vol. 41(1), pages 61-79.
    4. Ali, Syed Zahid & Anwar, Sajid & Valadkhani, Abbas, 2012. "Macroeconomic consequences of increased productivity in less developed economies," Economic Modelling, Elsevier, vol. 29(3), pages 621-631.
    5. Yang, Chyan & Liu, Hsian-Ming, 2012. "Managerial efficiency in Taiwan bank branches: A network DEA," Economic Modelling, Elsevier, vol. 29(2), pages 450-461.
    6. Assaf, A. George & Josiassen, Alexander, 2012. "Time-varying production efficiency in the health care foodservice industry: A Bayesian method," Journal of Business Research, Elsevier, vol. 65(5), pages 617-625.
    7. Siriopoulos, Costas & Tziogkidis, Panagiotis, 2010. "How do Greek banking institutions react after significant events?--A DEA approach," Omega, Elsevier, vol. 38(5), pages 294-308, October.
    8. Portela, Maria C.A.S. & Thanassoulis, Emmanuel, 2010. "Malmquist-type indices in the presence of negative data: An application to bank branches," Journal of Banking & Finance, Elsevier, vol. 34(7), pages 1472-1483, July.
    9. Ioannis E. Tsolas & Dimitris I. Giokas, 2012. "Bank branch efficiency evaluation by means of least absolute deviations and DEA," Managerial Finance, Emerald Group Publishing, vol. 38(8), pages 768-785, August.

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