Evaluation of Bank Branches Using a Dynamic Network Data Envelopment Analysis Model

Hamid  Bahrami; Davood Gharakhani; Soheila  Khishtandar

Authors

Hamid Bahrami Ph.D. student, Department of Industrial Management, Qa.C., Islamic Azad University, Qazvin, Iran Author https://orcid.org/0009-0005-4298-6300
Davood Gharakhani Department of Industrial Management, Qa.C., Islamic Azad University, Qazvin, Iran Corresponding author https://orcid.org/0000-0001-5323-7472
Soheila Khishtandar Department of Industrial Management, Qa.C., Islamic Azad University, Qazvin, Iran Author https://orcid.org/0000-0002-7876-7290

Keywords:

Dynamic network data envelopment analysis, evaluation, bank

Abstract

The purpose of this study is to evaluate bank branches using a dynamic network data envelopment analysis model. Bank performance evaluation is a critical aspect of financial and economic management that facilitates the analysis of banks’ efficiency, productivity, and growth potential. Such evaluations are commonly conducted using financial indicators, including liquidity ratios, profitability ratios, and asset quality. Data envelopment analysis is a powerful analytical technique for measuring the relative efficiency of a set of decision-making units based on their inputs and outputs. Data from bank branches in Qazvin Province were used to test the efficiency of and solve the proposed model. The model proposed in this article evaluates decision-making units dynamically and simultaneously calculates the efficiency of the overall system and its constituent divisions. It therefore enables managers to identify inefficient divisions and make appropriate decisions to improve the overall efficiency of the organization.

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