International Journal of
Physical Sciences

  • Abbreviation: Int. J. Phys. Sci.
  • Language: English
  • ISSN: 1992-1950
  • DOI: 10.5897/IJPS
  • Start Year: 2006
  • Published Articles: 2557

Full Length Research Paper

Efficiency analysis and classification of bank by using Data Envelopment Analysis (DEA) Model: Evidence of Iranian Bank

Ali Mansoury1* and Mahdi Salehi2
  1Management Department, Zanjan University, Iran. 2Accounting and Management Department, Takestan Branch, Islamic Azad University, Takestan, Iran.
Email: [email protected]

  •  Accepted: 27 May 2011
  •  Published: 31 July 2011



Data envelopment analysis is the most practical nonparametric methods to compute efficiency and to rank decision- making units. This method is based on a series of optimizing and using the technique of linear programming. Using this method, this paper evaluates the efficiency of Industrial and Mine Bank in Iran. Using this method, the rank of each branch has been measured according to the types of efficiency (technical efficiency, management efficiency and scale efficiency). Further, kind of returning to scale has been evaluated in each branch (ascending, descending or constant productivity). Then, efficient and inefficient units have been recognized, optimal quantity of inputs in the inefficient units have been evaluated, surplus of production factors have been computed, the pattern or reference branches and weight of each for inefficient branches have been introduced too, and finally based on the average of efficiency, type of returning to scale, frequency of each branch as a pattern and efficiency and inefficiency, all of the branches have been ranked and a ranking system have been developed. Using this system branches are classified to six levels as: superior, excellent and degrees from 1 to 4.


Key words: Data envelopment analysis (DEA), Banker, Charnes and Copper (BCC), Charnes, Cooper and Rhodes (CCR), management efficiency, scale efficiency, technical efficiency.