Application of DEA Methodology in Measuring Efficiency of Some Selected Commercial Banks in Bangladesh. Hossian, M., M., Sobhan, M., A., & Sultana, S. Jahangirnagar University Journal of Statistical Studies, 33:57-64, 2016.
Application of DEA Methodology in Measuring Efficiency of Some Selected Commercial Banks in Bangladesh [pdf]Paper  abstract   bibtex   
Banking sector is one of the most important mechanisms of Bangladesh financial system since the early 1970s. In most developing countries, the banking sector represents the backbone of the financial system. Performance of a bank is generally conceptualized as bank's ability to generate transaction by effectively utilizing its resources. Bank efficiency has been an important issue in transition. This paper focuses on measuring efficiency performance of 21 commercial banks in Bangladesh of the year 2014 with the help of Data Envelopment Analysis (DEA). The technical efficiency is estimated by using the input-oriented and output-oriented DEA methods under the variable return to scale (VRS). Results show that under the VRS assumptions, both input-oriented output-oriented methods out of twenty one banks only five banks namely ICB Islami bank, National bank, Basic Bank, EXIM bank and NRB bank are technically efficient because they have the technical efficiency scores equal to one. The Bangladesh banking sector is expected to be able to meet the increasing and more sophisticated demands from consumers and businesses, to adapt and adjust to the technological advances, to face the challenges of globalization and liberalization, and thereby contributing to the overall economic growth and stability.

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