Assessing the performance of Canadian bank branches using data envelopment analysis

This paper examines the performance of 758 branches of one big Canadian bank nationwide using Data Envelopment Analysis (DEA) from several perspectives. The system-differentiated DEA models used in the paper consider the systematic difference among different geographical areas. Five alternatives to express outputs are presented in order to provide complementary information to the bank management and further investigation of the cause of inefficiency when assessing bank branches is given. Moreover, the correlation analysis of different models is provided. The potential management uses of DEA results are also presented.