Comparing Economic Efficiency in Iranian public and Private Banks With Data Envelopment Analysis Method

اقتصاد پولی مالی

مقاله 1، دوره 15، شماره 25، مهر 1387   

نوع مقاله: پژوهشی

شناسه دیجیتال (DOI): 10.22067/pm.v15i25.1806

نویسندگان

حسین زاده بحرینی حسین زاده بحرینی^* ؛ ناجی میدانی ناجی میدانی؛ چمانه گیر چمانه گیر

چکیده

Efficiency growth in financial institutions, one of the most important economic institutions in every country, is a fundamental step toward economic development Iranian banks do not have desirable efficiency, because most of them are governmental and without financial markets development. In this paper we want to address and compare efficiency in public and private banks, so we have used Data Envelopment Analysis (DEA) approach, which is linear programming method. and being simple and reliable to measure the efficiency. we analysis the structure of banks and compare economic efficiency in governmental and private banks after establishing the first private bank. First we consider economic efficiency in governmental and private banks with variable return to scale using DEA approach.
We have used two methods, named as: intermediation approach with income aspect and production approach with value added aspect. Efficiency accounting with using the first aspect shows that the economic efficiency in governmental banks is more than private banks, and the reason is that in private banks, there are several people who are deciding about the approaches, with different ideas and also there are not enough experts in banks problems. In the second approach, we find out that the economic efficiency in private banks is more than public bank. The main reason for that, is upper amount of technical efficiency in these banks. In this approach, the results during the first year of research (1380) is meaningless, The reason is the basic structure of private banks in the past and the time of their establishment, that causes comparison of them whith governmental banks to be difficult. At last we conclude that desirable efficiency of private banks and also announcing the following clauses of principle 44 of the I.R.Iran constitution mentioning to privatization of some governmental banks, it is necessary to become more efficient and the competition of the two groups of banks result in upgrading the level of quality and economic efficiency of them.