Measuring Relative Efficiency of Commercial Banks in Bahrain Using Data Envelopment Analysis
International Journal of Economics, Finance and Management Sciences
Volume 2, Issue 6, December 2014, Pages: 297-305
Received: Nov. 6, 2014; Accepted: Nov. 17, 2014; Published: Nov. 20, 2014
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Authors
Minwir Al-Shammari, Department of Management and Marketing, College of Business Administration, University of Bahrain, Kingdom of Bahrain
Seref Turen, Department of Economics and Finance, College of Business Administration, University of Bahrain, Kingdom of Bahrain
Mohamed S. Abou El-Seoud, Department of Economics and Finance, College of Business Administration, University of Bahrain, Kingdom of Bahrain
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Abstract
The study aims at measuring relative efficiency of seven banks listed on Bahrain Bourse under the commercial banks sub-sector over the period 2008-2012 by employing Data Envelopment Analysis (DEA) as a special linear programming model that assesses relative efficiency of decision-making units (DMUs) using multiple incommensurable input and multiple incommensurable output measures. By adopting the production approach of DEA with restricted choice of variables, the study has isolated the relatively efficient banks that achieved total efficiency score from those that could not achieve it. The study has also identified input and output slacks of inefficient banks and suggested the efficient input and output targets for improvement.
Keywords
Efficiency, Commercial Banks, DEA, Slacks, Linear Programming, Bahrain
To cite this article
Minwir Al-Shammari, Seref Turen, Mohamed S. Abou El-Seoud, Measuring Relative Efficiency of Commercial Banks in Bahrain Using Data Envelopment Analysis, International Journal of Economics, Finance and Management Sciences. Vol. 2, No. 6, 2014, pp. 297-305. doi: 10.11648/j.ijefm.20140206.11
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