Input congestion in loan operations

In the previous decade the Swedish banking sector underwent large changes. Probably the single most influential cause was a gradual relaxation of regulations. The development meant new challenges and opportunities of Swedish banks. This paper investigates the development of efficiency in loan operations in Swedish banks using Data Envelopment Analysis. Data from 12 banks over a period of 9 years are collected and presented in the form of a ‘window analysis’ of efficiency patterns. Particular emphasis is put on analyzing growth strategies and returns to scale.