A Study of Cost, Revenue, and Profit Efficiency of Commercial Banks in Cambodia Using DEA Approach

摘要

This paper examines the cost, revenue, and profit efficiency of the Cambodian banking system over the period 2010-2013, using Data Envelopment Analysis. Results show that, on average, the cost efficiency decreased from 86% in 2010 to 71%) in 2013. The different development can be seen in the case of revenue efficiency, when average revenue efficiency increased from 77% in 2010 to 90% in 2012, and dropped to 65% in 2013. The profit efficiency was 78% in 2010 and 2011, and then increased to 81% in 2012; however, it reduced to 73% in 2013. Big banks had, on average, higher cost, revenue, and profit efficiency than smaller counterparts, while foreign banks, on average, were more cost, revenue, and profit efficient than Cambodian banks. The results suggest that commercial banks in Cambodia still have potential for cost savings as well as revenue and profit increases.