EVALUATING THE EFFICIENCY OF BANK BRANCHES WITHIN ONE BANK: A MATHEMATICAL PROGRAMMING APPROACH

Abstract

The purpose of the paper is to evaluate the relative efficiency of the branches of Komercijalna Banka AD Skopje using the mathematical programming approach data envelopment analysis (DEA). Because the number of the branches of the bank was small there was a need to increase it. To deal with this problem and to include time dimension in the model a valuable DEA technique known as window analysis was used. The time period covered in the analysis was from 2009 to 2011. The results of the relative efficiency for the included branches were presented in the bank and it was determined that they reflect the real situation.