Efficiency evaluation of commercial banks in Pakistan: A slacks-based measure Super-SBM approach with bad output (Non-performing loans).

ABSTRACT: According to recent figures from the State Bank of Pakistan (SBP), since 2006, commercial banks' non-performing loans (NPLs) have significantly risen. To this end, the primary objective of this research is to explore the impact of NPLs on the operational efficiency of commercial banks in Pakistan. NPLs were incorporated as bad output in the efficiency estimation of 24 CBs for the period 2006-2017. This study employs the data envelopment analysis (DEA) Super-SBM with the undesirable output for the efficiency evaluation of CBs. To test the robustness of our results, we used two different input-output bundles (model A and model B). The findings show a significant difference exists between the results estimated with and without undesirable output. Furthermore, the results of super-efficiency e

SUBMITTER: Shah WUH 

PROVIDER: S-EPMC9275710 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature