<abstract xmlns="http://www.w3.org/1999/xhtml"><p> This paper estimates the efficiency of Czech commercial banks during the period 2001 to 2011. We applied Dynamic Data Envelopment Analysis (DEA) to data from Czech commercial banks. The DEA measures the relative efficiency of a homogeneous set of decision-making units (DMUs) in their use of multiple inputs to produce multiple outputs. Dynamic Data Envelopment Analysis is a new approach which estimates the performance of a group of DMUs during several periods of time. The results of Dynamic DEA models showed that the average efficiency computed under the assumption of constant returns to scale reached a value of 86.7% and that the average efficiency estimated under the assumption of variable returns to scale was 95.7%. Efficiency slightly increased in the period analysed. The result of scale efficiency found that the main source of inefficiency is the inaccurate size of the biggest banks and also the excess client deposits managed by Czech banks.</p></abstract>

This paper estimates the efficiency of Czech commercial banks during the period 2001 to 2011. We applied Dynamic Data Envelopment Analysis (DEA) to data from Czech commercial banks. The DEA measures the relative efficiency of a homogeneous set of decision-making units (DMUs) in their use of multiple inputs to produce multiple outputs. Dynamic Data Envelopment Analysis is a new approach which estimates the performance of a group of DMUs during several periods of time. The results of Dynamic DEA models showed that the average efficiency computed under the assumption of constant returns to scale reached a value of 86.7% and that the average efficiency estimated under the assumption of variable returns to scale was 95.7%. Efficiency slightly increased in the period analysed. The result of scale efficiency found that the main source of inefficiency is the inaccurate size of the biggest banks and also the excess client deposits managed by Czech banks.

ESTIMATION OF BANKING EFFICIENCY IN THE CZECH REPUBLIC: DYNAMIC DATA ENVELOPMENT ANALYSIS

SilesianUniversity in Opava, School of BusinessAdministration in Karviná, Department of Finance,Univerzitní námestí 1934/3, 733 40 Karviná, Czech Republic

DANUBE

This paper estimates the efficiency of Czech commercial banks during the period 2001 to 2011. We applied Dynamic Data Envelopment Analysis (DEA) to data from...

ESTIMATION OF BANKING EFFICIENCY IN THE CZECH REPUBLIC: DYNAMIC DATA ENVELOPMENT ANALYSIS

Publié en ligne: 21 janv. 2014

Pages: 261 - 275

DOI: https://doi.org/10.2478/danb-2013-0014

Mots clés
Efficiency, Dynamic Data Envelopment Analysis, Czech Banking Sector, Commercial Banks

This content is open access.

ESTIMATION OF BANKING EFFICIENCY IN THE CZECH REPUBLIC: DYNAMIC DATA ENVELOPMENT ANALYSIS

Publié en ligne: 21 janv. 2014

Pages: 261 - 275

DOI: https://doi.org/10.2478/danb-2013-0014

Mots clésEfficiency, Dynamic Data Envelopment Analysis, Czech Banking Sector, Commercial Banks

This content is open access.

Mots clés
Efficiency, Dynamic Data Envelopment Analysis, Czech Banking Sector, Commercial Banks