Open Conference Systems, ICQQMEAS2015

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Bank’s Branches efficiency and productivity characteristics: evidence from a Greek Bank
Christos Lemonakis

Last modified: 2015-09-24

Abstract


The paper investigates the major factors that affect efficiency and productivity of Banks on a branch level. DEA analysis is used to estimate the efficiency level of a bank’s branch network. Technical and scale efficiency (SE) scores are calculated obtained through an input-oriented DEA model. For the research study, a sample of 49 branches of a Greek bank is used, operating in 4 regions of Greece over the period 2009- 2001. First a classification technique is used to classify firms with common characteristics and the score of the most important variables used become subsequently inputs to DEA model to explore the efficiency and productivity of the branches. Secondly an econometric model is used to determine the impact of internal and external factors on the efficiency and productivity scores. The main contribution of this work is a better understanding of various factors that may affect a bank’s branch efficiency and insolvency. This provides important implications for managers and policy makers for the better understanding of profitability and productivity issues in the Greek banking system, especially those contributing to branches viability

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