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

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.

Keywords

• DEA
• SBM
• bank branches
• production approach
• efficiency-profitability matrix