SEARCH ARTICLE

47 Pages : 375-382

http://dx.doi.org/10.31703/gssr.2019(IV-III).47      10.31703/gssr.2019(IV-III).47      Published : Sep 2019

The Efficiency Analysis of Domestic and Foreign Commercial Banks of Pakistan: The Data Envelopment Analysis Approach

    The aim of the present study is to investigate the efficiency of domestic and foreign commercial banks of Pakistan over the period from the year 2009 to 2013 through the DEA technique (Data envelopment analysis). DEA estimates efficiency by the ratio of inputs (multiple) to outputs (multiple). For this purpose, the number of employees, deposits and fixed assets were used as inputs while Advances and Investments were taken as the outputs based on the intermediation approach. Two generic forms of DEA explicitly CCR and BCC were applied to work out technical and pure-technical efficiencies, respectively. Results offered significant information to make the decision about the efficiency of commercial banks. The study outcomes showed that foreign owned banks performed better against public and private owned banks in respect of all the efficiency measures throughout the period of study.

    Efficiency, Domestic Banks, Foreign Banks, Commercial Banks, Data Envelopment Analysis
    (1) Farhat Ullah Khan
    Assistant Professor, Department of Business Administration, Gomal University, Dera Ismail Khan, KP, Pakistan.
    (2) Aziz Javed
    Assistant Professor, Department of Business Administration, Gomal University, Dera Ismail Khan, KP, Pakistan.
    (3) Khalid Rehman
    Lecturer, Department of Business Administration, Gomal University, Dera Ismail Khan, KP, Pakistan.