Assessing Productivity and Competitiveness of Canadian Bank Branches with Systematic Difference using Data Envelopment Analysis

摘要

In today’s economy and society, performance and competitiveness analysis in the banking industry attract more and more attention. This paper examines the performance of 70 branches of 3 large Canadian banks in the city of Mississauga, Canada Using Data Envelopment Analysis (DEA). The System differentiated DEA model used in the paper considers the systematic difference and cultural differences due to corporate management's policies among the three examined banks. Both types of envelopment surfaces, BCC and CCR, were used and scale efficiency issues were examined. The results show that the examined branches have a high level of operational efficiency and there are no significant operational efficiency differences among the 3 banks. The potential management uses of DEA results are also presented. All the findings are discussed in the context of Canadian bank market.