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Assessing Bank Performance Using Dynamic SBM Model

Author

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  • Chia-Nan Wang

    (Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan
    Department of Industrial Engineering and Management, Fortune Institute of Technology, Kaohsiung 83160, Taiwan)

  • Quoc-Chien Luu

    (Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan)

  • Thi-Kim-Lien Nguyen

    (Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan)

  • Jen-Der Day

    (Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan)

Abstract

Global economic growth has led banks to expand their operations all over the world. The purpose of this research was to understand the efficiency of 18 large bank from all over the world during the period from 2013 to 2017. The performance was estimated by a dynamic slacks-based measure (SBM) model in data envelopment analysis (DEA). This model could be solved using inputs, outputs, and links. The banks variables were considered as follows: Assets, capitalization, and liabilities as inputs; revenue as output; and net interest income as a good link. The final empirical results exhibit the efficiency for each term, and the overall score. The data analysis recommends a feasible solution to refine inefficient terms based on the projections (slacks). This study visually observed the proficiency of the banking industry to equip enterprises with the best choice for their finances.

Suggested Citation

  • Chia-Nan Wang & Quoc-Chien Luu & Thi-Kim-Lien Nguyen & Jen-Der Day, 2019. "Assessing Bank Performance Using Dynamic SBM Model," Mathematics, MDPI, vol. 7(1), pages 1-13, January.
    • Handle: RePEc:gam:jmathe:v:7:y:2019:i:1:p:73-:d:196976
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    References listed on IDEAS

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    3. Larissa M. Batrancea, 2021. "An Econometric Approach on Performance, Assets, and Liabilities in a Sample of Banks from Europe, Israel, United States of America, and Canada," Mathematics, MDPI, vol. 9(24), pages 1-22, December.

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