Identifying Inefficient Bank Branches Using DEA and Use of Integrated Strategies in Order to Increase Performance Branches

Among the various economic and financial organizations, banks are considered and discussed as one of the most important pillars of any economic system. Therefore, considering the important role of banks in the developed countries and their multiple branches, bank branch performance measurement is important. The main purpose of this work is measure branch performance and the use of integration strategy to obtain efficient branches. Accordingly, first the efficiency of bank branches conceptual system was defined. Then using the action plan were inputs and outputs determined. In the next stage, Tehran province branch efficiency was calculated through Data Envelopment Analysis model as non-radial (SBM) to determine the inefficient branches. Based on the bank merger policy, the clusters were determined and the branches in each cluster were merged in a binary form. The final stage of the integration of non-radial (SBM) to assess the performance of branches and compare it with their initial performance.