Advanced Search
MyIDEAS: Login to save this article or follow this journal

Relative Efficiency in the branch network of a Greek bank: A quantitative analysis

Contents:

Author Info

  • G.S. Donatos
  • D.I. Giokas
Registered author(s):

    Abstract

    Measuring and evaluating the efficient use of resources of Bank branches plays a decisive role in a Bank’s strategic planning. Usually, efficiency is measured by using accounting ratios, such as labor productivity, capital productivity, return on assets etc. When these ratios are properly used, they provide significant information regarding the effective operation of the branch, and contribute in carrying out intrabank comparisons and comparisons over a period of time. However, by using such ratios, an important part of the branch operation remains uncovered: the measurement of the effective use of the resources. New mathematical programming models that are related with the degree at which each branch makes use of its resources, are applied to deal with the weaknesses of such ratios. This study discuss the limitations of using accounting ratio analysis for assessing performance and, presents and interprets the results from the application of mathematical programming models in a sample of branches of a Greek Bank.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.ersj.eu/repec/ers/papers/08_3_p4.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by European Research Studies Journal in its journal European Research Studies Journal.

    Volume (Year): XI (2008)
    Issue (Month): 3 ()
    Pages: 53-72

    as in new window
    Handle: RePEc:ers:journl:v:xi:y:2008:i:3:p:53-72

    Contact details of provider:
    Web page: http://www.ersj.eu/

    Related research

    Keywords: Banking; efficiency; mathematical programming;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Athanassopoulos, Antreas D, 1998. "Nonparametric Frontier Models for Assessing the Market and Cost Efficiency of Large-Scale Bank Branch Networks," Journal of Money, Credit and Banking, Blackwell Publishing, Blackwell Publishing, vol. 30(2), pages 172-92, May.
    2. Allen N. Berger & John H. Leusner & John Mingo, 1994. "The efficiency of bank branches," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 94-26, Board of Governors of the Federal Reserve System (U.S.).
    3. Parkan, Celik, 1987. "Measuring the efficiency of service operations: An application to bank branches," Engineering Costs and Production Economics, Elsevier, Elsevier, vol. 12(1-4), pages 237-242, July.
    4. Athanassopoulos, Antreas D., 1997. "Service quality and operating efficiency synergies for management control in the provision of financial services: Evidence from Greek bank branches," European Journal of Operational Research, Elsevier, Elsevier, vol. 98(2), pages 300-313, April.
    5. Oral, Muhittin & Yolalan, Reha, 1990. "An empirical study on measuring operating efficiency and profitability of bank branches," European Journal of Operational Research, Elsevier, Elsevier, vol. 46(3), pages 282-294, June.
    6. Ferrier, Gary D. & Lovell, C. A. Knox, 1990. "Measuring cost efficiency in banking : Econometric and linear programming evidence," Journal of Econometrics, Elsevier, Elsevier, vol. 46(1-2), pages 229-245.
    7. Allen N. Berger & David B. Humphrey, 1997. "Efficiency of Financial Institutions: International Survey and Directions for Future Research," Center for Financial Institutions Working Papers, Wharton School Center for Financial Institutions, University of Pennsylvania 97-05, Wharton School Center for Financial Institutions, University of Pennsylvania.
    8. Soteriou, Andreas C. & Zenios, Stavros A., 1999. "Using data envelopment analysis for costing bank products," European Journal of Operational Research, Elsevier, Elsevier, vol. 114(2), pages 234-248, April.
    9. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, Elsevier, vol. 6(1), pages 21-37, July.
    10. Hartman, Thomas E. & Storbeck, James E. & Byrnes, Patricia, 2001. "Allocative efficiency in branch banking," European Journal of Operational Research, Elsevier, Elsevier, vol. 134(2), pages 232-242, October.
    11. Sherman, H. David & Gold, Franklin, 1985. "Bank branch operating efficiency : Evaluation with Data Envelopment Analysis," Journal of Banking & Finance, Elsevier, Elsevier, vol. 9(2), pages 297-315, June.
    12. Schaffnit, Claire & Rosen, Dan & Paradi, Joseph C., 1997. "Best practice analysis of bank branches: An application of DEA in a large Canadian bank," European Journal of Operational Research, Elsevier, Elsevier, vol. 98(2), pages 269-289, April.
    13. Banker, Rajiv D. & Cooper, William W. & Seiford, Lawrence M. & Thrall, Robert M. & Zhu, Joe, 2004. "Returns to scale in different DEA models," European Journal of Operational Research, Elsevier, Elsevier, vol. 154(2), pages 345-362, April.
    14. Drake, L & Howcroft, B, 1994. "Relative efficiency in the branch network of a UK bank: An empirical study," Omega, Elsevier, Elsevier, vol. 22(1), pages 83-90, January.
    15. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, Elsevier, vol. 2(6), pages 429-444, November.
    16. Giokas, DI, 1991. "Bank branch operating efficiency: A comparative application of DEA and the loglinear model," Omega, Elsevier, Elsevier, vol. 19(6), pages 549-557.
    17. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, INFORMS, vol. 30(9), pages 1078-1092, September.
    18. Paradi, Joseph C. & Schaffnit, Claire, 2004. "Commercial branch performance evaluation and results communication in a Canadian bank--a DEA application," European Journal of Operational Research, Elsevier, Elsevier, vol. 156(3), pages 719-735, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xi:y:2008:i:3:p:53-72. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eleni Giannakopoulou).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.