Measuring the efficiency of top Philippine banks relative to the largest banks in the ASEAN region from 2008-2011 using data envelopment analysis

• Main Authors: Lee, Patrick Jan N., Lu, Arbee B., Tan, Joanna Niccole M., Xu, Shayne Jacqueline G.
• Format: text
• Language: English
• Published: Animo Repository 2013
• Subjects: Banks and banking > Philippines; Data envelopment analysis; Economics
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11299
• Institution: De La Salle University

Pure technical efficiency measures the ability of a decision-making unit to remain efficient under exogenous environments. As opposed to past studies that have covered only efficiency in the banking sector on the national level, this study examined the relative efficiencies of the largest banks in the Philippines against those in other selected ASEAN countries over time. The efficiency scores were measured through data envelopment analysis using data gathered from the respective annual reports of each bank from years 2008 to 2011. The study determined that the top Philippine banks are relatively inefficient against their ASEAN counterparts, hence, further calibration of resources will enhance performance.