An Evaluation of Commercial Bank Performance in Thailand by Data Envelopment Analysis

Abstract

The purpose of this study is to measure the performance of  11  Thai commercial backs Between 2006 and 2008. We use Data Envelopment Analysis and Malmquist Productivities Index to measure performance score and changing in the score over the time. The result found that Kasikorn Bank Public Company Limited, ACL Bank Public Company Limited, Thanachart Bank Public Company Limited,  Kiatnakin  Bank  and  Krungthai  Bank Public Company  Limited  are Efficient in constant return to scale assumption measure by CCR-input Model. Bangkok Bank Public Company Limited, Siam Commercial Bank Public Company Limited,Kasikorn Bank Public Company Limited, ACL Bank Public Company Limited, Thanachart Bank Public Company Limited, Kiatnakin Bank and Krungthai Bank Public Company Limited are efficient in variable Return to scale measure by BCC-input Model. We also found that every bank improves their Production technology. That means every bank invented new method to produce their product. Nevertheless, in total productivities, Thai Military Bank Public Company Limited Obviously Declined. That means the bank produce less output by same amount of input yearly. This bank Should concentrate to improve production process by using input more effectively.