Relative efficiency in the branch network of a UK Bank: an empirical study

Abstract This paper investigates the relative efficiency of a UK clearing bank's branches using the non-parametric programming methodology. In addition to calculating indices of technical (productive) efficiency for all branches in the sample, this measure of technical efficiency is dichotomized into its constituent components, scale efficiency and pure technical efficiency. Finally, the non-parametric technique is utilized to investigate the causes of observed inefficiency in the case of one illustrative branch example in detail.