PERFORMANCE STUDY OF THE LARGEST RETAIL BANKS IN BRAZIL THROUGH THE DATA ENVELOPMENT ANALYSIS (DEA)

Abstract

This paper studies the performance of eight largest national banks in the retail sector, through the application of Data Envelopment Analysis (DEA) in the period by the first and second halves of 2008 and first half of 2009, having as basis the information in the report 50 Maiores Bancos do Banco Central. We selected two input variables and two output variables, respectively: Efficiency and Operating Cost; and Average Return of Loan and Return on Equity. The results show that only Itaú can be efficient in all three periods under analysis. Overall, it was found that the Efficiency and Average Return of Loan were problematic in the performance analysis of these banks in this period. It was also noted that the units have made significant shareholdings changes maintained or improved their performance index.