Evaluation of Bank Branches with Financial Indicators Using Data Envelopment Analysis

Banks play an important role in the economic development of any country as the main part of the financial system. Calculating efficiency and finding the strengths and weaknesses of branches has a significant impact on increasing the efficiency of banks. Data envelopment analysis is one of the performance evaluation techniques that is able to introduce benchmarks for inefficient decision-making units in addition to estimating relative efficiency. In this paper, using a data envelopment analysis, a model for evaluating efficiency, studying sensitivity analysis of 18 branches of one of the commercial banks of Iran with financial ratios is presented. For this purpose, a model is proposed for output estimating with ratio data. By changing the input values the output values can be estimated. The amount of changes required in the outputs to maintain the efficiency as well as maintaining the rank is possible by using the proposed model with ratio data.