DATA ENVELOPMENT ANALYSIS OF BANKING SECTOR IN BANGLADESH

Abstract

Banking sector of Bangladesh is flourishing and contributing to its economy. In this aspect measuring efficiency is important. Data Envelopment Analysis technique is used for this purpose. The data are collected from the annual reports of twenty four different banks in Bangladesh. Data Envelopment Analysis is mainly of two types – constant returns to scale and variable returns to scale. Since this study attempts to maximize output, so the output oriented Data Envelopment Analysis is used. The most efficient bank is one that obtains the highest efficiency score.