DEA application in banking: relationship between efficiency scores and bank size
Santrauka
The paper aims to investigate the relationship between banks’ size and efficiency scores. The
study applies Data Envelopment Analysis (DEA) as a tool for measuring bank relative efficiency. Sample
includes European banks and the data for the analysis was extracted form BankScope data base. Intermediation
approach to banking has taken as a conceptual basis for the choice of variables. Input-oriented
DEA model under the assumption of variable returns to scale (VRS) was applied. Besides, the relationship
between bank efficiency scores and traditional performance ratios was examined. The paper contributes
to the existing literature, filling the gap in regard to bank efficiency measuring in new member states
of the European Union.