1861. Comparative Efficiency of Bank Branches in Cape Verde: Insights from DEA
Invited abstract in session WC-60: DEA applications in Banking and Finance, stream Data Envelopment Analysis and its applications.
Wednesday, 12:30-14:00Room: Western LT
Authors (first author is the speaker)
| 1. | Gabriela Dos Santos
|
| 2. | Maria Isabel Gomes
|
| CMA - Universidade Nova de Lisboa |
Abstract
The efficiency of bank branches is a key factor in overall banking performance, especially in
regions with unique geographic and economic challenges like Cape Verde. With a dispersed
population and a strong reliance on emigrant remittances, optimizing banking operations is
crucial. However, limited research has explored Cape Verde's specific banking challenges and the
role of digital banking in improving efficiency.
This study evaluates the efficiency of bank branches in a Cape Verdean bank, focusing on
transactional efficiency (shifting transactions to alternative channels) and operational efficiency (branch performance in daily operations). Using Data Envelopment Analysis (DEA), a non-
parametric method for efficiency assessment, the study applies the BCC model for transactional efficiency and the RDM, MSBM, and modified MSBM models for operational efficiency,
addressing the challenge of negative data. By applying DEA, the study identifies efficient and
inefficient branches, providing insights into best practices and areas for improvement.
Findings reveal that while some branches consistently perform well, others struggle, with
efficiency outcomes varying based on input selection. Additionally, no clear correlation exists
between transactional and operational efficiency. These results highlight the need for further
research on profit efficiency and the impact of emigrant clients on banking operations.
Keywords
- Data Envelopment Analysis
Status: accepted
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