tailieunhanh - Technical efficiency evaluation of technical efficiency and super-efficiency of commercial banks in Albania

Measurement and analysis of banking efficiency has received increasing attention in recent years due to the rapid globalization of the financial industry and increasing competitiveness in inter-national financial markets. Banks are the dominant financial institutions in Albania and their health is important to the general economy. In addition, the economical growth is closely related to the well-being of the banking sector. In this study, the technical efficiency and the super-efficiency of commercial banks in Albania during year 2014 is analyzed using Data Envelopment Analysis (DEA) and by adopting the intermediation approach. DEA is a technique that measures the efficiency of decision making units that use multiple inputs and multiple outputs. The wellknown DEA models: the BCC model, super-efficiency BCC model, SBM model and super-efficiency SBM model are used to evaluate efficiency score of banks. The input-oriented versions of these models under variable return to scale are applied to rank the commercial banks. The data used in the analysis are taken from the financial statements of banks. The results indicated that 12 out of 16 banks were technically efficient. The findings of this research can be used by banks managers and other financial authorities in Albania. | Technical efficiency evaluation of technical efficiency and super-efficiency of commercial banks in Albania