Management Efficiency in Japanese Regional Banks: A Network DEA

Data Envelopment Analysis (DEA) is a widely used method to evaluate bank's management efficiency. To evaluate the management efficiency of Japanese regional banks, there is a limit in traditional simple DEA model. It is because the management situation of Japanese regional banks has been diversified. This study applies a slack-based measure network DEA (NSBM-DEA) model to evaluate the management efficiency of Japanese regional banks. The objective of this research is to evaluate overall and divisional efficiencies of Japanese regional banks. This study contributes to understand management efficiency of the divisions when regional banks evaluate their management efficiency.