Evaluating the Performance of Financial Institutions using a Data Envelopment Analysis model in a FDH networks (Case Study: Saman Bank)

مهندسی مالی و مدیریت اوراق بهادار

Article 12, Volume 13, Issue 53, December 2022, Pages 228-212   

Document Type: Original Article

Authors

Hadise Vahedi-Anvar¹; Narges Norouzi^{* 2}

¹Department of Industrial engineering, Tehran North branch,, Islamic Azad University, Tehran, Iran.

²Department of Industrial engineering, Tehran North branch,, Islamic Azad University, Tehran,, Iran.

Abstract

Today, measuring efficiency is one of the most important methods of performance evaluation in any organization. The outputs obtained in all inputs represent the efficiency. Due to the comprehensiveness of the banking sector, it can be introduced as one of the main areas of economic development. In this paper, a data envelopment analysis (DEA) model in a Free Disposal Hull (FDH) network is presented considering the undesirable output for handling the status of the financial deposits in Saman Bank branches. Since the basic models calculate efficiency by considering the overall output and input and ignoring the internal relationships in the banking process flow system; therefore, by considering this issue, in this paper, we present a DEA model that calculates the efficiency score of the branches with the high accuracy. Then the proposed model is compared to the basic CCR model. Finally, the cross-performance method is used to rank the units of the branches.

Keywords

data envelopment analysis (DEA); Financial Institutions; Evaluating the Performance; FDH

References