A Review of Measuring the Efficiency of Financial Institutions: A DEA Approach

The management of a financial institution, like any other company, requires the use of a certain number of indicators. The first indicators to be monitored are activity and profitability indicators, then we move on to ratio analysis. The analysis of ratios has shown a certain number of limitations. Efficiency analysis has just filled in the gaps and especially the use of data envelopment analysis.

This paper seeks to highlight the salient aspects surrounding the study of efficiency in financial institutions. The paper focuses on the works that have mobilized the data envelopment method in different economic spaces. The objective is to highlight the factors that have an impact on the measured efficiency, and whether these factors are common to all the studies analyzed in this paper. The comparative study shows that technical efficiency is positively impacted by the size and history of the financial institution. However, it is not significantly affected by geographic location.