An application of data envelopment analysis for measuring the relative efficiency in banking industry

Measuring the relative efficiency of banking industry has been a popular subject among both practitioners and academicians. Data envelopment analysis (DEA) has been widely applied for different purposes. This paper presents an empirical investigation to measure the relative efficiency of various banks located in province of Semnan, Iran. The proposed study uses DEA method to rank all units and using Anderson and Peterson method (1993) [Andersen, A procedure for ranking efficient units in data envelopment analysis. Management Science, 39, 1261-1264], we provide some super efficiency for inefficient units. The study also provides reference numbers for inefficient units and gives some target values for all inefficient units.