Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method
The study provides new empirical evidence on the level of profit efficiency and returns to scale of the Bangladesh banking sector. We employ the Slack-Based Data Envelopment Analysis (SBM-DEA) method to assess the level of profit efficiency of individual banks over the years 2004 to 2011. The empiri...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Kaunas University of Technology
2014
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| Online Access: | http://psasir.upm.edu.my/id/eprint/56403/ http://psasir.upm.edu.my/id/eprint/56403/1/Efficiency%20and%20returns%20to%20scale%20in%20the%20Bangladesh%20banking%20sector%20empirical%20evidence%20from%20the%20slack-based%20DEA%20method.pdf |
| _version_ | 1848853073459412992 |
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| author | Sufian, Fadzlan Kamarudin, Fakarudin |
| author_facet | Sufian, Fadzlan Kamarudin, Fakarudin |
| author_sort | Sufian, Fadzlan |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The study provides new empirical evidence on the level of profit efficiency and returns to scale of the Bangladesh banking sector. We employ the Slack-Based Data Envelopment Analysis (SBM-DEA) method to assess the level of profit efficiency of individual banks over the years 2004 to 2011. The empirical findings indicate that the Bangladesh banking sector has exhibited the highest and lowest level of profit efficiency during years 2004 and 2011 respectively. We find that there are only eight banks have been profit efficient throughout the period under study. The empirical findings seem to suggest that most of Bangladesh banks have been experiencing economies of scale due to being at less than the optimum size, or diseconomies of scale due to being at more than the optimum size. Thus, decreasing or increasing the scale of production could result in cost savings or efficiencies. |
| first_indexed | 2025-11-15T10:48:10Z |
| format | Article |
| id | upm-56403 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:48:10Z |
| publishDate | 2014 |
| publisher | Kaunas University of Technology |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-564032017-07-31T09:16:29Z http://psasir.upm.edu.my/id/eprint/56403/ Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method Sufian, Fadzlan Kamarudin, Fakarudin The study provides new empirical evidence on the level of profit efficiency and returns to scale of the Bangladesh banking sector. We employ the Slack-Based Data Envelopment Analysis (SBM-DEA) method to assess the level of profit efficiency of individual banks over the years 2004 to 2011. The empirical findings indicate that the Bangladesh banking sector has exhibited the highest and lowest level of profit efficiency during years 2004 and 2011 respectively. We find that there are only eight banks have been profit efficient throughout the period under study. The empirical findings seem to suggest that most of Bangladesh banks have been experiencing economies of scale due to being at less than the optimum size, or diseconomies of scale due to being at more than the optimum size. Thus, decreasing or increasing the scale of production could result in cost savings or efficiencies. Kaunas University of Technology 2014 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/56403/1/Efficiency%20and%20returns%20to%20scale%20in%20the%20Bangladesh%20banking%20sector%20empirical%20evidence%20from%20the%20slack-based%20DEA%20method.pdf Sufian, Fadzlan and Kamarudin, Fakarudin (2014) Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method. Engineering Economics, 25 (5). pp. 549-557. ISSN 1392-2785; ESSN: 2029-5839 http://inzeko.ktu.lt/index.php/EE/article/view/5035 10.5755/j01.ee.25.5.5035 |
| spellingShingle | Sufian, Fadzlan Kamarudin, Fakarudin Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method |
| title | Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method |
| title_full | Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method |
| title_fullStr | Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method |
| title_full_unstemmed | Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method |
| title_short | Efficiency and returns to scale in the Bangladesh banking sector: empirical evidence from the slack-based DEA method |
| title_sort | efficiency and returns to scale in the bangladesh banking sector: empirical evidence from the slack-based dea method |
| url | http://psasir.upm.edu.my/id/eprint/56403/ http://psasir.upm.edu.my/id/eprint/56403/ http://psasir.upm.edu.my/id/eprint/56403/ http://psasir.upm.edu.my/id/eprint/56403/1/Efficiency%20and%20returns%20to%20scale%20in%20the%20Bangladesh%20banking%20sector%20empirical%20evidence%20from%20the%20slack-based%20DEA%20method.pdf |