Prioritization of the Factors Affecting Bank Efficiency Using Combined Data Envelopment Analysis and Analytical Hierarchy Process Methods

Abstract

Bank branches have a vital role in the economy of all countries. They collect assets from various sources and put them in the hand of those sectors that need liquidity. Due to the limited financial and human resources and capitals and also because of the unlimited and new customers’ needs and strong competition between banks and financial and credit institutions, the purpose of this study is to provide an answer to the question of which of the factors affecting performance, creating value, and increasing shareholder dividends are superior to others and consequently managers should pay more attention to them. Therefore, in this study, the factors affecting performance (efficiency) in the areas of management, personnel, finance, and customers were segmented and obtained results were ranked using both methods of Data Envelopment Analysis and hierarchical analysis. In both of these methods, the leadership style in the area of management; the recruitment and resource allocation in the area of financing; the employees’ satisfaction, dignity, and self-actualization in the area of employees; and meeting the new needs of customers got more weights.