Evaluation of Bank Efficiency In Brazil a DEA Approach

Purpose: The research aims to evaluate the efficiency of banks that operated in the Brazilian market in 2013. To achieve this goal, efficient banks were identified according to the production approach. To detect and explain efficiency standards, additional analyses were carried out related to (1) ca...

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Detalles Bibliográficos
Autores: Cava, Patricia Benites, Salgado Junior, Alexandre Pereira, Branco, Adriel Martins de Freitas
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2016
País:Brasil
Institución:Universidade Presbiteriana Mackenzie (MACKENZIE)
Repositorio:RAM. Revista de Administração Mackenzie
Idioma:inglés
portugués
OAI Identifier:oai:ojs.editorarevistas.mackenzie.br:article/8019
Acceso en línea:https://editorarevistas.mackenzie.br/index.php/RAM/article/view/8019
Access Level:acceso abierto
Palabra clave:Bank Efficiency. Banks. Brazilian Banks. Production Approach. DEA.
Eficiencia bancaria. Bancos. Los bancos brasileños. Enfoque de la producción. DEA.
Eficiência Bancária. Bancos. Bancos Brasileiros. Abordagem Produção. DEA.
Descripción
Sumario:Purpose: The research aims to evaluate the efficiency of banks that operated in the Brazilian market in 2013. To achieve this goal, efficient banks were identified according to the production approach. To detect and explain efficiency standards, additional analyses were carried out related to (1) capital origin, (2) size, (3) business segment and (4) risk rating.Originality/Gap/Relevance/Implications: The Brazilian literature on bank efficiency features several studies linking the efficiency of banks to capital origin and size. However, the relationship between efficiency and business segment has been poorly explored and the relationship between efficiency and risk rating is scarce. In this sense, this research contributes to the literature by exploring the relationship between efficiency and business segment, as well as the relationship between efficiency and risk rating.Key methodological aspects: The research uses a quantitative approach and employs the Data Envelopment Analysis (DEA) technique to calculate efficiency scores. The data were obtained from the Central Bank of Brazil (BACEN).Summary of key results: Federal public banks and large banks are, on average, more efficient. Banks operating in foreign exchange and retail, as well as banks with high credit ratings, also achieved high levels of efficiency.Key considerations/conclusions: Efficient banks proved to be more profitable, lent less money in proportion to their total assets, and received fewer complaints filed with the Central Bank of Brazil in 2013.