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Technical Efficiency and Profitability of Services in Banking: an Application of Managerial Decision-Making Matrix

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  • Emília Zimková

    (Department of Finance and Accounting, Faculty of Economics, Matej Bel University in Banská Bystrica, Národná 12, 974 01 Banská Bystrica, Slovakia)

Abstract

The paper is a part of an on-going study of the performance assessment of Slovak bank branches. With aim to assess better the performance of the bank branches from different angles, the efficiency-profitability managerial decision-making matrices is used. The efficiency analysis adopts the SBM non-oriented model under the standpoint of production approach. Efficiency scores together with the profit indicators of each bank branch enable to gain a comprehensive picture of network performance. DEA results suggest that there is considerable space for an improvement of the bank branches efficiency. Moreover, between the efficiency and the profitability a medium correlation was found.

Suggested Citation

  • Emília Zimková, 2016. "Technical Efficiency and Profitability of Services in Banking: an Application of Managerial Decision-Making Matrix," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 64(6), pages 2183-2190.
    • Handle: RePEc:mup:actaun:actaun_2016064062183
    DOI: 10.11118/actaun201664062183
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    References listed on IDEAS

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