engleski

“Evaluating the efficiency of commercial banks by using DEA window analysis”

The aim of the paper is to evaluate the relative efficiency of Macedonian commercial banks by using the DEA technique window analysis. Based on the profitability approach, two inputs and two outputs are selected for our research. The sample consists of 14 commercial banks in Macedonia and the observed period covers 11 years (2007-2017). According to the average efficiency score for the whole observed period, the most efficient bank belongs to the group of large banks, and also this group of banks show the highest efficiency. The Macedonian banking sector as a whole shows the highest efficiency in 2007 (84.04%), and the lowest efficiency in 2011 (65.25%). In the period from 2007 to 2011 a decline in the efficiency that is related to the global financial crisis is noted, from 2012 until 2016 the efficiency notes growth, and in 2017 compared to 2016 a small decline is noted (2.28%). Findings from this research are consistent with the factual situation in the Macedonian banking sector and they give valuable information to regulators, policy makers and bank management in the direction of further improvement of one of the most important indicators of success for financial institutions, the efficiency.

Data envelopment analysis, Window analysis, Profitability approach, Relative efficiency, Banking sector, Commercial banks.

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