Performance evaluation in the banking industry : a three -stage network directional efficiency analysis approach

To disentangle the sources of bank inefficiency, this paper presents an extended three -stage network directional efficiency analysis (NDEA) approach by taking the internal structure of the banking system into account. The proposed three -stage NDEA approach extends the conventional NDEA approach, providing a unique efficiency decomposition and identifying which variables drive the inefficiency for banking systems with a three -stage network structure. This methodology offers a more comprehensive understanding of inefficiency sources, which is crucial for the strategic optimization of bank operations. An empirical application of Agricultural listed banks from ۲۰۱۸ to ۲۰۲۳ during the Five-year Plan reveals that the overall inefficiency of sample banks is primarily sourced from the deposit-generating subsystem. Additionally, different types of banks display differentiated evolution modes over different dimensions, confirming the importance of applying the proposed three -stage NDEA approach. The findings highlight the significance of understanding the intricate interplay within the bank’s internal structure to improve operational efficiency and performance.

کلیدواژه ها:

Banking ، Data envelopment analysis ، Directional efficiency analysis ، Three-stage