Journal
JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY
Volume 56, Issue 5, Pages 483-494Publisher
PALGRAVE MACMILLAN LTD
DOI: 10.1057/palgrave.jors.2601839
Keywords
data envelopment analysis; banking; cost efficiency; production; intermediation and value-added approaches
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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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