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branches.PDF
African Journal of Business Management Vol. 5(3), pp. 889-901, 4 February, 2011
Available online at /AJBM
DOI: 10.5897/AJBM10.584
ISSN 1993-8233 ©2011 Academic Journals
Full Length Research Paper
Measuring bank branch performance using Data
Envelopment Analysis (DEA): The case of Turkish bank
branches
1 2
Mehmet Hasan Eken and Suleyman Kale
1Finance and Banking PhD Programme, Institute of Social Sciences, Kadir Has University, Istanbul, Turkey.
2T.C. Ziraat Bank, Sirinevler Branch, Istanbul, Turkey.
Accepted 15 November, 2010
The aim of this study is to develop a performance model for measuring the relative efficiency and
potential improvement capabilities of bank branches by identifying their strengths and weaknesses.
Another purpose is to investigate the production and profitability aspects of branches. Under both
production and profitability approaches, efficiency characteristics of branches, which are grouped
according to different sizes and regions, have similar tendencies. In both analyses, it is apparent that
branch size and scale efficiency are related to each other. As branch size increases scale efficiency
increases too and after the most productive scale size, however, as size increases efficiency decreases.
Too small and too large branches need special attention. Putting production and profit efficiency
scores on two scales reveals the performing characteristics of branches. Each region needs different
handling. Branches with
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