Measurement of the Efficiency of Bank Branches using Data Envelopment Analysis based on Balanced Scorecard

Document Type : Article

Authors

1 Professor, Department of Industrial Management, Faculty of Economics and Management, Tarbiat Modares University, Tehran, Iran

2 Assistant professor, Department of Business Management, Faculty of Economics and Management, Tarbiat Modares University, Tehran, Iran

3 PhD Student in Operations Research, Department of Industrial Management, Faculty of Economics and Management, Tarbiat Modares University, Tehran, Iran

10.30497/rmg.2026.249778.1051

Abstract

Background: Over the years, financial institutions, especially banks, have been placed in an almost developing competitive environment as one of the most underlying components of the economic system of the state. Hence, the measurement of the efficiency of banks has been the priority in the studies of the recent decade.
Purpose: The present study is aimed at measuring the relative efficiency of Bank Branches in Tehran.
Method/Approach: To this end, the library studies are used first to derive the desired indicators and are regulated based on a Balanced Scorecard (BSC). Then, some indicators were confirmed using the opinions of experts and were regulated based on inputs and outputs. Finally, the measurement of the efficiency of the said branches was done using Data Envelopment Analysis (DEA) and based on Balanced Scorecard (BSC).
Findings: As a result, out of the 73 branches studied, the relative efficiency of 30 branches was at a maximum level equal to 1. In other words, 30 branches were recognized as efficient ones. The other 43 branches gained efficiency in the range 0.69506 to 099714, which is relatively high efficiency.

Keywords

Main Subjects

Religion, Management, & Governance
Volume 4, Issue 2 - Serial Number 8
Articles
May 2026
Pages 5-22

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History

  • Receive Date: 02 January 2026
  • Revise Date: 17 February 2026
  • Accept Date: 14 March 2026

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