TWO-STAGE DEA APPROACH TO EVALUATE THE EFFICIENCY OF BANK BRANCHES

In emerging market economies, performance analyses in the services industries, specially banking sector, take more and more attention. This paper illustrates an evaluation of 50 pilot branches of one Iranian private bank, Tosse-Eh Farda Bank, using Data Envelopment Analysis (DEA). Additionally, we implement an extension to this model with the aim of ranking the efficient Decision Making Units (DMUs) applying Ordinary Linear Square (OLS). Special emphasis was placed on how to present the DEA results to management in order to provide more guidance on what to manage and how to accomplish the changes. Eventually, the potential management uses of the DEA results were presented.