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Cost efficiency, production and value-added models in the analysis of bank branch performance

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Journal of the Operational Research Society

Abstract

This paper develops a framework for performance appraisal in the context of a bank branch network. A data envelopment analysis model is advocated that can identify both input and output inefficiencies from a cost minimization perspective. The model is then applied to the analysis of a bank branch network and the production and value-added approaches are deployed jointly to give a comprehensive assessment of bank branch efficiency. The sources of underperformance are identified and their managerial implications are explored.

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Correspondence to A S Camanho.

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Camanho, A., Dyson, R. Cost efficiency, production and value-added models in the analysis of bank branch performance. J Oper Res Soc 56, 483–494 (2005). https://doi.org/10.1057/palgrave.jors.2601839

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  • DOI: https://doi.org/10.1057/palgrave.jors.2601839

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