Paraná’s Credit Unions: an analysis of their efficiency and productivity change (original) (raw)
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We examine the efficiency of Brazilian credit unions through DEA and its relationships with classification groups using Tobit regressions. We applied a traditional analysis model for banks and another approach for cooperatives. We also analyzed the productivity, efficiency and technology changes by applying an Adjacent Malmquist. The main results indicate that the link between cooperative members is not determinant for efficiency; nevertheless, free admission cooperatives tend to be less efficient than those that have admission restrictions. It is also noteworthy that the contrasting results generated by the models point to the need for specific models that consider outputs relevant to cooperatives.
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INFOR: Information Systems and Operational Research, 2004
Data envelopment analysis (DEA) is a linear programming-based technique developed to evaluate the relative efficiency of non profit and public sector decision-making units that use multiple inputs to produce multiple outputs. Technically, as pointed out by Joro, Korhonen and Wallcmius (1998), DEA and Multiple Objective Linear Programming (MOLP) aim at suggesting improvements for inefficient units based on the identification of efficient units in a certain space. In this study, DEA is used as a managerial audit tool to identify and measure inefficiencies among a set of 73 independent decision-making units within one federation of the "Caisses Populaires Desjardins" in Quebec. The DEA results were compared with the federation's traditional accounting ratio measures. Management found that the DEA results confirmed most of their intuition on which units were unprofitable, and also pinpointed units that made a profit but were operationally ineftlcient. Overall, they agree with our results and on the benefits of using DEA to complement their accounting ratio analysis for improving the efficiency of some of their "caisses".
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Ekonomika
The paper proceeds by discussing the different definitions of credit unions. The research focuses on the efficiency of the credit unions in Lithuania. Indeed, efficiency is the degree to which the rational use of limited economic resources is ensured. More specifically, we focus on the economic efficiency of the credit unions. The methodology that is followed in the paper comprises the measures of cost and profit efficiency. Further on, profit efficiency is defined in terms of both standard profit efficiency and alternate profit efficiency. The measures of efficiency are implemented via the data envelopment analysis (DEA). The frontier model comprises the two outputs and the three inputs. The calculations confirm the operationality of the proposed methodology for rating credit unions according to the efficiency of their activity.
Management Science Letters, 2011
Article history: Received October 29 2010 Received in revised form 15 March 2011 Accepted 19 March 2011 Available online 19 March 2011 In this paper, we propose a method to measure the relative efficiency of different units of a publicly traded bank using data envelopment analysis. The study also measures the productivity of different banks using Malmquist index and the results are compared with relative efficiency of banks. The proposed model uses nine financial factors reported by the bank officials for both studies where five items are used for efficiency measurement and the other four items are used for productivity measurement. The results indicate that different banks perform inefficient in terms of efficiency but they have attempted to increase their productivity. We also analyze the results and give guidelines on how inefficient units could increase their efficiency by reducing their inputs or increasing their outputs. © 2011 Growing Science Ltd. All rights reserved.
In this study the technical and scale efficiency of Costa Rican banking system is estimated for the 2005-2015 period, through the Data Envelopment Analysis (DEA). The estimations are within the approach of variable returns to scale with slacks developed by and the constant returns to scale approach developed by . Efficiency scores were estimated annually for each bank to get the average for state banks, private banks, and the whole system. The inputs and outputs considered in the DEA model were defined through the intermediation approach. Through the application of DEA was concluded that a) for the whole system there are no clear efficiency improvements during the period analyzed, b) the most efficient banks were Banco BCT and Banco General, c) private banks were on average more efficient than state banks and d) the goods of net use were, on average, the input with bigger slack.
Technical Efficiency of Credit Unions in Ghana
Journal of finance and economics, 2016
The study examined the technical efficiency of 66 Credit Unions (CUs) in Ghana using a Cobb-Douglas Stochastic frontier model for the period 2009 to 2012. Factors influencing the technical inefficiency of the CUs were also investigated. We applied the production and intermediation approaches to efficiency modelling to select the input and output variables to generate the technical efficiencies of the CUs. The results show average technical efficiency of 53.40% and 57.96% across the sampled CUs over the period for the production and intermediation models respectively. Thus CUs can improve inputs use by about 47% and 42% on the average to increase outputs through its production and intermediation channels respectively. We also found staff numbers and productivity as critical inputs that influence technical efficiency of the CUs. Finally, CUs can take advantage of increasing returns in financial intermediation to restructure and engage in mergers to strengthen their capital base and co...
Social Science Research Network, 2012
This study analyzes the performance and comparative efficiency between the Caixa de Crédito Agricola Mútuo da Região de Bragança e Alto Douro bank branches, credit cooperative that integrates "Crédito Agrícola Mútuo Integrated System" (SICAM). With the use of Data Envelopment Analysis (DEA), we perform a bidimensional approach, evaluating the efficiency in a transactional perspetive and also for their capacity to generate results. Considering the increasing role that the automated service channels are taking in the costumer's relationship, the transactional perspetive has been subdivided into presential and not presential. This study, based on a specific analysis for each efficiency dimensions, in the overall institution and each branches that make up your network, allowed us to gauge the institution performance in production and profitability perspetives. Face to the agency heterogeneity size checked, have been applied constant returns to scale and variable returns to scale approaches, verifying higher scores when considering the effect of each agency production scale. To consider also the future application possibilities for this methodology, by introducing qualitative variables that relate the metrics now achieved with the service quality provided to internal and external customers and demographic variable of the action areas.
2015
This study intends to measure Productivity change of Tanzanian commercial banks for the period of seven years. In this study the nature of efficiency and productivity change is investigated through the Malmquist Productivity Index (MPI).The Malmquist productivity index has the components which are used in performance measurement; such as changes in technical efficiency, change in technological change, change in pure technical efficiency, change in scale efficiency as well as change in Total factor productivity. Most commercial banks recorded improvement in efficiency change by 67 percent, a technical change improvement by 83 percent, pure technical change improvement by 67 and scale efficiency change by 50 percent. Generally the mean efficiency change of LDB is higher compared to the rest of the groups; hence manage to push the frontier of possibility outwards with respect to other groups, followed by small banks with mean efficiency change of 10.3 percent while the LFB recorded eff...
Financial statistical journal, 2024
This work aims to analyze the efficiency of Brazilian financial institutions until the COVID-19 pandemic period, from production and profitability perspectives. To accomplish this, the data envelopment analysis (DEA) techniques, specifically the CCR and BCC models, are applied to 213 Brazilian financial institutions in four methodological stages. The first step involved conducting a literature review of similar studies. The second step consisted of gathering financial information for each bank through the website of the Central Bank of Brazil. The third step involved selecting the variables to be used in the models. The fourth step was outlier detection using the jackstrap method. Subsequently, the mentioned efficiency models were applied, and the most efficient banks were identified based on each perspective. The results identified heterogeneous groups of efficient banks based on different market segments, with a focus on the efficiency of large banks and public banks when considering the production-oriented perspective. It is also observed that new digital banks are among the banks considered efficient. These findings are valuable for the scientific literature investigating the sustainability of financial institutions, as well as for decision-makers seeking to make more efficient investment allocations and for banking supervisory authorities in formulating risk regulatory policies.