Theoretical and Applied Economics
No. 5 / 2008 (522)
Evaluation of Individual and Aggregate Credit Institutions Management’s Performance
Iustina Alina Boitan
Academia de Studii Economice, Bucuresti
Abstract. Data Envelopment Analysis method allows both the measurement of the relative efficiency of an homogenous group of credit institutions, and the identification of those banking activity’s components generating a state of inefficiency. The present study focuses on this last issue, by proposing an interpretation of inefficiency signals and by strengthening the major role played by the credit institution’s executive board in designing a viable, coherent business strategy and in defining its risk profile.
DEA method places all the efficient credit institutions on the efficiency frontier, without allowing their differentiation. In order to exceed this limit, we have analysed and compared two ranking techniques. The results obtained suggest that the hierarchy generated by the two techniques hasn’t changed significantly for almost 60% of our sample of credit institutions.
Contents
Importance of Non-banking Financial Institutions and of the Capital Markets in the Economy. The Case of Romania
The Leading Economic Sectors Building Comparative and Competitive Advantages in Romania's Foreign Trade
The University – a Rational-Biologic Model
Reconstruction in Eastern Europe
Evaluation of Individual and Aggregate Credit Institutions Management’s Performance
Senzorial Marketing – Means of Evaluating Customer’s Satisfaction on Balnear Tourism
The Ethos of Cost Management