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Public Enterprise Half-Yearly Journal, 2016, Issue 22., Vol.1, Article 7

vol 22

 

Technical Efficiency Analytics for the Public Banks in Argentina

Vincent Charles*

CENTRUM Católica Graduate Business School

Pontificia Universidad Católica del Perú, Lima, Peru

Claudia Peretto

Facultad de Ciencias Económicas

Universidad Nacional de Córdoba, Córdoba, Argentina

Tatiana Gherman

School of Business and Economics

Loughborough University, Leicestershire, United Kingdom

Received July 2015; Revised December 2015; Accepted March 2016

DOI: 10.21571/pehyj.2016.2201.07

 

Abstract

In a context in which the competitive landscape of the Argentinian banking industry continues to mature as a result of phenomena such as globalization, modification of regulations, new technologies, and mergers and acquisitions, the quest for higher revenues has never been more stringent. It becomes relevant, therefore, to perform systematic benchmarking through the measurement of the efficiency of the banks. The present research paper uses data envelopment analysis (DEA) to rank the Argentinian public banks based on their performance over 17 years, between 1998 and 2014. The results reveal that 1999 and 2002 were “black years” for the public banking sector, years during which the country registered political and economic and financial crises, respectively. Furthermore, the trend analysis shows that the Argentinian public banks are converging towards better consistency in their performance over the years. It is hoped that the present paper will provide the concerned authorities a ground to assess the health of the individual public banks.

 

Keywords: Argentinian banks, public banks, data envelopment analysis, progressive time-weighted mean

 

Reference to this paper should be made as follows: Charles, V., Peretto, C., and Gherman, T. (2016). Technical Efficiency Analytics for the Public Banks in Argentina. ICPE Public Enterprise Half-Yearly Journal, 22(1), 118-139. DOI: 10.21571/pehyj.2016.2201.07

 

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