Measuring the Efficiency of Post Banks in Iran's Provinces and Effecting Factors on it

Post Bank as one of the financial institution has had successful experience in many countries. As a result, the Post Bank Company has been established in 1996 aiming of developing financial services especially in rural region. Now after passing a decade of Post Bank activities in the form of independent headquarters in provinces, assessing their activities is possible by the criterion such as efficiency which is the subject of this paper. In this paper, efficiency and effecting factors on it has been determined for 28 independent headquarters of Iran’s Post Bank in duration of 1999- 2005 form using Stochastic Frontier Functions (SFA) and Logarithmic - Linear of cost function. Result of this study by model (1) - assessing efficiency- shows that efficiency of Iran’s Post Bank is 60%. The provinces of Tehran and Charmahal va Bakhtiyari have had minimum and maximum efficiency respectively. Also, headquarters of Post Bank in the less developed region like Charmahal va Bakhtiyari and Kohkiluye va Boyer Ahmad, comparing with more headquarters in the developed provinces like Tehran and Khorasan, had been more efficient. Meanwhile based on the result of model (2)- assessing the Effecting factors on efficiency- efficiency of headquarters has inverse relationship with the size of Post Bank (total asset), number of Employee, number of branch, and time, has direct relationship with total income of Post Bank.