A study on the measurement of operational efficiency of commercial banks--Analysis based on super-efficient DEA model and Malmquist index

Abstract

The banking sector has a risk-intensive character and early warning of the risk of commercial bank failures is particularly important. In order to measure the efficiency of commercial banks in Poland and provide a cut-off line for bank failure efficiency, this paper firstly adopts the dichotomous method to pre-process the existing data, then selects three representative input indicators and two output indicators to construct an evaluation index system for bank efficiency, and uses the super-efficiency DEA model to measure the efficiency of banks, and concludes that comprehensive technical efficiency inhibits the rise of bank efficiency, and the efficiency of banks in 2017 -2021 banks' efficiency showed a zigzag fluctuation trend; secondly, based on the static analysis of super-efficient DEA, the dynamic efficiency of banks was estimated and decomposed based on the Malmquist index method; finally, the failure cut-off was determined by testing whether there was a significant difference in the mean values.