Performance Evaluation of Iranian Private Banks Using Data Envelopment Analysis (DEA)

Assessing performance of any organizations is necessary in guiding their future strategic decisions. Banks also are no exception. The purpose of this study is to evaluate the performance of 15 Iranian private banks using data envelopment analysis in 5 years period using Data Envelopment Analysis (DEA). The result will help these banks to improve their performances by focusing on inadequate factors and evaluate their efficiency among the competitors. In the process of evaluating the banks, all of the important indicators are verified and inputs and outputs have been selected in order to assess the efficiency of the banks based on previous studies and the views of experts in this field. Then, the efficient and inefficient banks and their operational rank were determined. Also, reasons for inefficiency of banks would have been detected and proposal for improvements would be discussed. Keywords: Private Banks, Banking efficiency, DEA, Iranian Banks, Privatization