Economic efficiency of the fifteen largest banks in Brazil, by Data Envelopment Analysis - DEA

Abstract

This work verified the economic efficiency of  the fifteen largest banks in Brazil, considering their total assets in the period between 2016 and 2019, through Data Envelopment Analysis, creating a "ranking" of efficiency. Foram used data from the financial statements  of the sample contained in the databases of  the Central Bank of Brazil and the banks themselves, defining the variables inserted in the model. The model used for analysis was the CCR, using the variousEfficiency Index, Operating Cost and Deposit Level for  Input, and the variables Average Return on Credit Operations, Return on Equity and Immediate Liquidity for Output. The result showed that the most efficient bank for the period analyzed, taking into account the average of the efficiencies of all periods was  the Banco Safra, which presentsor higher efficiency index according to the DEA model. On the other hand, the banks that were inefficient had a lower efficiency index, thus occupying the last positions of the "Ranking", among which are Bnp Paribas, Abc Brasil, Banrisul, J. P. Morgan and Banco Do Brasil.