Acta Univ. Agric. Silvic. Mendelianae Brun. 2016, 64(6), 2183-2190 | DOI: 10.11118/actaun201664062183

Technical Efficiency and Profitability of Services in Banking: an Application of Managerial Decision-Making Matrix

Emília Zimková
Department of Finance and Accounting, Faculty of Economics, Matej Bel University in Banská Bystrica, Národná 12, 974 01 Banská Bystrica, Slovakia

The paper is a part of an on-going study of the performance assessment of Slovak bank branches. With aim to assess better the performance of the bank branches from different angles, the efficiency-profitability managerial decision-making matrices is used. The efficiency analysis adopts the SBM non-oriented model under the standpoint of production approach. Efficiency scores together with the profit indicators of each bank branch enable to gain a comprehensive picture of network performance. DEA results suggest that there is considerable space for an improvement of the bank branches efficiency. Moreover, between the efficiency and the profitability a medium correlation was found.

Keywords: DEA, SBM, bank branches, production approach, efficiency-profitability matrix
Grants and funding:

The author wishes to acknowledge financial support of the grant scheme VEGA [1/0757/15 Augmentation of the theoretical construct of the SCP paradigm and of the efficient structure hypothesis in banking and insurance by the aspect of risk and their empirical validation in the conditions of the Slovak Republic] and VEGA [1/0859/16 Dynamics of nonlinear economic processes].

Prepublished online: December 21, 2016; Published: January 1, 2017  Show citation

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Zimková, E. (2016). Technical Efficiency and Profitability of Services in Banking: an Application of Managerial Decision-Making Matrix. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 64(6), 2183-2190. doi: 10.11118/actaun201664062183
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