A Comparative Intermediary and Operational Efficiency Study of Private and Government Banking System in Iran Applying Data Envelopment Analysis (DEA)

American Journal of Scientific Research, 2012

22 Pages Posted: 26 Sep 2019

See all articles by Hosein Asgari Alouj

Hosein Asgari Alouj

Islamic Azad University (IAU) - Bilesavar branch

Nahid Maleki Nia

Islamic Azad University (IAU) - Bilesavar branch

Ayyoub Sarafraz Pireivatlou

Islamic Azad University (IAU) - Bilesavar branch

Date Written: 2012

Abstract

This study evaluated efficiency of private and government banks using Data Envelopment Analysis with Assumption of a constant and variable return to scale. The statistical study included nine government and six private banks taken from the period of 2006-2010. Total expenditures and deposits as inputs and total credit facilities and revenues as outputs were chosen because of both operational and intermediary approach were used in this study. The results implied the condition of inputs and outputs of the governments was not optimized with compared the private banks and also, the same of the commercial banks was not optimized with compared the specialized banks and their effectiveness could be increased. Also the BCC output centered model was more meaningful than CCR modelused to express the efficiency score of government and private banks that respectively were 93.82%, 94.52% and thus the weighted average of efficiency for whole banks would be 94.1%

Keywords: Efficiency, decision making units, constant returns to scale, variable returns to scale, output- oriented, input- oriented.

JEL Classification: G21, G24, G19, C61, E44, M41

Suggested Citation

Asgari Alouj, Hosein and Nia, Nahid Maleki and Pireivatlou, Ayyoub Sarafraz, A Comparative Intermediary and Operational Efficiency Study of Private and Government Banking System in Iran Applying Data Envelopment Analysis (DEA) (2012). American Journal of Scientific Research, 2012, Available at SSRN: https://ssrn.com/abstract=3449006

Hosein Asgari Alouj (Contact Author)

Islamic Azad University (IAU) - Bilesavar branch

Iran

Nahid Maleki Nia

Islamic Azad University (IAU) - Bilesavar branch

Iran

Ayyoub Sarafraz Pireivatlou

Islamic Azad University (IAU) - Bilesavar branch ( email )

Iran

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
6
Abstract Views
199
PlumX Metrics