n Management Dynamics : Journal of the Southern African Institute for Management Scientists - A model to compare bank size and the performance of banks by using financial statement analyses and Data Envelopment Analysis
|Article Title||A model to compare bank size and the performance of banks by using financial statement analyses and Data Envelopment Analysis|
|© Publisher:||Southern African Institute for Management Scientists (SAIMS)|
|Journal||Management Dynamics : Journal of the Southern African Institute for Management Scientists|
|Author||G. Van der Westhuizen and M. Oberholzer|
|Publication Date||Jan 2003|
|Pages||18 - 26|
This paper employs conventional financial statement analyses as well as Data Envelopment Analysis (DEA),as a non-parametric approach, to carry out a performance evaluation of a bank at regional level. Two approaches to defining bank regional size are also identified. The primary objective of this study is to determine whether there is a relationship between the results of the different performance measures and the size of a bank region. <br>Evidence was found that there is a significant relationship between some of the performance measures and the size of a bank region. In some cases there is a positive relationship between the region size and the performance measure, for example total income to staff cost. In other cases, a negative relationship exists between the region size and the performance measures, as in the case of total income to assets. The study concludes that managers (and not the size of a bank region) determine the performance of a bank region or bank branch.
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