Estimating the Efficiency of Banks by DEA Approachand Investigating its Relationship with Financial Ratios

The evaluation of performance of banks due to its crucial role in most economic activities
andhealth maintenance of financial markets and economic conditions has always beenconsidered On the other hand, because of the responsibility of DEA models - especially indetecting and determining the efficiency of banks has led to the use of the above-mentionedmodels is extensive.The goal of this article is to offer DEA for evaluating the performance of banks. Efficient andinefficient banks have been identified and finally, for the inefficient banking units thereference model has been introduced. In addition, the relationship between financial ratios andefficiency has been studied. The results show that 9 of the 20 units were efficient and the restwere inefficient. 8 financial ratios are presented: capital adequacy ratio, profitability ratios,management ratio and the asset quality ratio had the most direct relationship withperformance.