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Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method

The study provides new empirical evidence on the level of profit efficiency and returns to scale of the Bangladesh banking sector. We employ the Slack-Based Data Envelopment Analysis (SBM-DEA) method to assess the level of profit efficiency of individual banks over the years 2004 to 2011. The empiri...

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Main Authors: Sufian, Fadzlan, Kamarudin, Fakarudin
Format: Article
Language:English
Published: Kaunas University of Technology 2014
Online Access:http://psasir.upm.edu.my/id/eprint/56403/1/Efficiency%20and%20returns%20to%20scale%20in%20the%20Bangladesh%20banking%20sector%20empirical%20evidence%20from%20the%20slack-based%20DEA%20method.pdf
http://psasir.upm.edu.my/id/eprint/56403/
http://inzeko.ktu.lt/index.php/EE/article/view/5035
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spelling my.upm.eprints.564032017-07-31T09:16:29Z http://psasir.upm.edu.my/id/eprint/56403/ Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method Sufian, Fadzlan Kamarudin, Fakarudin The study provides new empirical evidence on the level of profit efficiency and returns to scale of the Bangladesh banking sector. We employ the Slack-Based Data Envelopment Analysis (SBM-DEA) method to assess the level of profit efficiency of individual banks over the years 2004 to 2011. The empirical findings indicate that the Bangladesh banking sector has exhibited the highest and lowest level of profit efficiency during years 2004 and 2011 respectively. We find that there are only eight banks have been profit efficient throughout the period under study. The empirical findings seem to suggest that most of Bangladesh banks have been experiencing economies of scale due to being at less than the optimum size, or diseconomies of scale due to being at more than the optimum size. Thus, decreasing or increasing the scale of production could result in cost savings or efficiencies. Kaunas University of Technology 2014 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/56403/1/Efficiency%20and%20returns%20to%20scale%20in%20the%20Bangladesh%20banking%20sector%20empirical%20evidence%20from%20the%20slack-based%20DEA%20method.pdf Sufian, Fadzlan and Kamarudin, Fakarudin (2014) Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method. Engineering Economics, 25 (5). pp. 549-557. ISSN 1392-2785; ESSN: 2029-5839 http://inzeko.ktu.lt/index.php/EE/article/view/5035 10.5755/j01.ee.25.5.5035
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description The study provides new empirical evidence on the level of profit efficiency and returns to scale of the Bangladesh banking sector. We employ the Slack-Based Data Envelopment Analysis (SBM-DEA) method to assess the level of profit efficiency of individual banks over the years 2004 to 2011. The empirical findings indicate that the Bangladesh banking sector has exhibited the highest and lowest level of profit efficiency during years 2004 and 2011 respectively. We find that there are only eight banks have been profit efficient throughout the period under study. The empirical findings seem to suggest that most of Bangladesh banks have been experiencing economies of scale due to being at less than the optimum size, or diseconomies of scale due to being at more than the optimum size. Thus, decreasing or increasing the scale of production could result in cost savings or efficiencies.
format Article
author Sufian, Fadzlan
Kamarudin, Fakarudin
spellingShingle Sufian, Fadzlan
Kamarudin, Fakarudin
Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method
author_facet Sufian, Fadzlan
Kamarudin, Fakarudin
author_sort Sufian, Fadzlan
title Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method
title_short Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method
title_full Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method
title_fullStr Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method
title_full_unstemmed Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method
title_sort efficiency and returns to scale in the bangladesh banking sector: empirical evidence from the slack-based dea method
publisher Kaunas University of Technology
publishDate 2014
url http://psasir.upm.edu.my/id/eprint/56403/1/Efficiency%20and%20returns%20to%20scale%20in%20the%20Bangladesh%20banking%20sector%20empirical%20evidence%20from%20the%20slack-based%20DEA%20method.pdf
http://psasir.upm.edu.my/id/eprint/56403/
http://inzeko.ktu.lt/index.php/EE/article/view/5035
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score 13.211869

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