One of the main challenges in Iran banking system is low level efficiency in various activities and services. The banking system should increase competitiveness in national hemisphere and enhance efficiencies via using inputs and recourses in an optimal manner. The aim of this paper is to measure the technical efficiencies in Mellat banks system to understand how the banking systems use of current resources. To getting this, we selected a random sample in various region, 120 branch in Tehran city to introduce efficient branch and typical as referred branch. Based on Data Envelopment Analysis (DPA) method, we found aggregate technical efficiency about, 0/68 and 0/78 in 2006 and 2007, respectively. These computations show that during the study period technical efficiencies has increased in selected Melat branch .Other findings show that there are a negative correlation coefficient between size of selected branch and efficiency in the period of study (-0/33) and emphasis on weak relation.In addition, the larger Banks branch in terms of financial activities has positive effect on absorption in reserves but has not effective role on enhancing efficiency.
Baseri B, Bagherishendi M, Baratpour M. An Analysis of Technical Efficiency of the Selected Branches of Mellat Bank in Tehran. qjerp 2010; 18 (54) :55-72 URL: http://qjerp.ir/article-1-237-en.html