Home / Scientific Research / /MEASURING the TECHNICAL EFFICIENCY OF the PRIVATE COMMERCIAL BANKS in SYRIA USING DATA ENVELOPMENT ANALYSIS /DEA

/MEASURING the TECHNICAL EFFICIENCY OF the PRIVATE COMMERCIAL BANKS in SYRIA USING DATA ENVELOPMENT ANALYSIS /DEA

Classification Master Thesis (Dissertation)
Author Ayham Mahmood ALhameed
Title MEASURING the TECHNICAL EFFICIENCY OF the PRIVATE COMMERCIAL BANKS in SYRIA

USING DATA ENVELOPMENT ANALYSIS /DEA/

Supervisor Dr. Asmhan Khalaf                     Dr. Othman Naqar
Faculty Faculty of Economics
Department Finance and Banking
Year 2017

 

Abstract

This study aimed at measuring the technical efficiency of the private commercial banks in Syria during the period 2010 – 2015. All private commercial banks—11 banks—in the country were covered. The DEA (Data Envelopment Analysis) method was used for assessing the overall, pure and scale technical efficiencies, and in order to achieve that, the CRS (constant return to scale) model and the VRS (variable return to scale) model were used. The financial intermediation style was used in determining bank input and output. NIRS (Non Increasing return to scale) and NDRS (Non Decreasing return to scale) were applied to study the course of scale returns (Decreasing, constant, Increasing). And windows analysis technology was employed to follow the course of the banks performance during the period studied, in addition to analyzing some financial data and the traditional financial indicators (financial ratios) of these banks.

The most important results obtained were that private commercial banks in yria did not work at typical capacity during the period 2010 – 2015, that the scale of returns was more Decreasing than constant or Increasing during the period tudied, and that the crisis had a negative effect on the efficiency of those banks between 2011 and 2014. On the other hand, all private commercial banks in Syria, except Oudeh Bank achieved full pure technical efficiency (100%) in 2015, and this indicates that these banks benefited from one another’s experiences with the passing of time, which helped make their levels of pure technical efficiency similar, as indicators of pure technical efficiency reflect the level of administrative experience at each bank, and this indicates a sharp increase in competitiveness, too. It was also concluded that there is no positive, statistically significant relation between the different indicators of the technical efficiency (overall, pure, scale) of the private commercial banks in Syria and traditional indicators, and that the DEA (Data Envelopment Analysis) method and traditional indexes complement each other.

 

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