Providing New Multi-Component Data Envelopment Analysis to Evaluate Efficiency of Bank Branches

Abstract

Looking at the economic definition of efficiency as optimal use of resources to produce possible maximum output, it can be understood the importance of this concept in management systems. Basically, Managers are trying to meet the satisfaction of all their stakeholders by optimally utilize of their resources to produce outputs. Due to high cost of holding money this point has more importance to the banking industry in Iran. In this paper, by looking at the structure of bank activities in Iran, a model with five different parts is provided that depicts the flow of affairs in banks. A mathematical model based on data envelopment analysis is presented to evaluate the efficiency of proposed structure and by using fuzzy approach, a method has been proposed to solve it. The results of applying the proposed model to 210 branches of one bank show that despite relative acceptable efficiency in resource attracting, and management, the efficiency of service, resource allocation and profitability parts are facing with important problem

Keywords

• relative efficiency
• data envelopment analysis
• multi-component model
• fuzzy algorithm