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Managing Bank Performance under COVID-19: A Novel Inverse DEA Efficiency Approach

Author

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  • Sabri Boubaker

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School)

  • T.D.Q. Le
  • T. Ngo

Abstract

The evolution of the COVID-19 pandemic is highly unpredictable; however, its impacts are limited to neither a single sector nor a single country. This study evaluates the performance and efficiency of 49 Islamic banks across 10 countries during 2019\textendash2020 to assess how those banks can preserve their performance and remain resilient in the aftermath of the COVID-19 pandemic. Using the conventional inverse data envelopment analysis (InvDEA) approach, we show that because of reductions in their outputs, 31 out of the 49 banks studied would need to reduce their inputs so that their efficiency can remain unchanged. However, we show that only 10 banks need to make such adjustments to maintain their efficiency levels using our proposed InvDEA efficiency model. The adjustment for those 10 banks would help in reducing more inputs, suggesting more cost savings, and improving the overall efficiency of the examined banks, compared with the other 31 banks. \textcopyright 2022 The Authors. International Transactions in Operational Research published by John Wiley & Sons Ltd on behalf of International Federation of Operational Research Societies.

Suggested Citation

  • Sabri Boubaker & T.D.Q. Le & T. Ngo, 2023. "Managing Bank Performance under COVID-19: A Novel Inverse DEA Efficiency Approach," Post-Print hal-04435441, HAL.
    • Handle: RePEc:hal:journl:hal-04435441
    DOI: 10.1111/itor.13132
    Note: View the original document on HAL open archive server: https://normandie-univ.hal.science/hal-04435441v1
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    References listed on IDEAS

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    4. Chiaramonte, Laura & Dreassi, Alberto & Girardone, Claudia & Piserà, Stefano, 2024. "Socially responsible banking: Weathering the Covid-19 storm," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 95(C).

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