Title: Sensitivity analysis and ranking a private bank branches by data envelopment analysis based on service quality approach

Authors: Mohammad Mehdi Tavakoli; Hadi Shirouyehzad; Reza Dabestani

Addresses: Department of Industrial Engineering, Najafabad Branch, Islamic Azad University, Isfahan, Iran ' Department of Industrial Engineering, Najafabad Branch, Islamic Azad University, Isfahan, Iran ' Department of Management and Economics, Tarbiat Modares University, Tehran, Iran

Abstract: Nowadays, the banking industry has a principal and key role in the economic growth and development of countries. In recent years, privatisation of the banking industry in Iran has led to more competition in this industry. This fact highlights the necessity for greater attention to this field of knowledge. In this condition, it is very important to improve the bank services. In this study, seven branches of a private bank are considered as the statistical population and their performance is evaluated through Data Envelopment Analysis (DEA). To solve the DEA model, the rates of payment loans, the customer deposit rate and the number of the staff were regarded as the multiple inputs and the level of service quality was considered as the output of the DEA model. Finally, the efficient banks were ranked and the sensitivity analyses were performed on the inputs and outputs and their results were evaluated.

Keywords: data development analysis; DEA; operational efficiency; service quality; sensitivity analysis; branch ranking; private bank branches; Iran; private banks; banking services; payment loans; customer deposit rate; employee numbers.

DOI: 10.1504/IJFSM.2013.056338

International Journal of Financial Services Management, 2013 Vol.6 No.2, pp.105 - 117

Received: 03 Aug 2012
Accepted: 11 Apr 2013
Published online: 13 Sep 2014 *

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