Journal of Applied Finance & Banking

Efficiency of the Brazilian Banking System in 2014: A DEA-SBM Analysis

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  • Abstract

    This study used the DEA-SBM technique to evaluate the efficiency of Brazilian banks in 2014 from the perspective of the three most recurring approaches in this evaluation type: intermediation, production, and profitability. The efficiency scores were evaluated by quintile and the Mann-Whitney test according to (1) capital origin; (2) public vs. private; (3) size; (4) operating segment (5) ratings. The analysis led to ten conclusions and demonstrated that federal public capital banks, micro-sized banks, the banks of the Retail segment (except for the intermediation approach) and AAA-rating banks were the most efficient institutions.

    JEL classification numbers: E5
    Keywords: DEA, Bank Efficiency, Brazilian banking system.