Effective operational programming and planning in Banking sector
Part of : Αρχείον οικονομικής ιστορίας ; Vol.XIII, No.1, 2001, pages 27-54
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27-54
Abstract:
An important problem that many banks face is to provide satisfactory cost estimates for the variety of products and services they offer. Accurate product cost estimates can be used to support better product mix and pricing decisions. In this paper we present a method for providing efficient and reliable cost estimates of bank products at the branch level, based on the non-parametric benchmarking technique of Data Envelopment Analysis (DEA). It compares branches objectively to identify the best-practice branches, the less productive branches, and the changes the less productive branches need to make to reach the best-practice level and to improve their profitability. Results from an impirical study undertaken in a banking environment to demonstrate the applicability of the method are also presented.
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