Identification and Prioritization of Banks' Efficiency Evaluation Indicators Using Factor Analysis and Fuzzy Delphi Method

Jalali, Sajjad; Anvary Rostamy, Ali Asghar; Seifoddini, Jalal

Document Type : Original Article

Authors

¹ Ph.D. Candidate, Department of Financial Management, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.

² Prof.Department of Management & Planning, Iran Management Study & Technology Development Center,Tarbiat Modares University, Tehran, Iran.

³ Assistant professor, Islamic Azad University, Eslamshar Branch , Tehran, Iran.

Abstract

Banks, as key participants in the financial market, play a crucial role in expediting production processes and driving economic growth. They achieve this by gathering savings and idle liquidity, and channeling these resources into vital economic sectors. Enhancing efficiency and performance is a primary management objective for these institutions, as it leads to improved productivity. However, given the multitude of indicators and criteria used to assess efficiency, it is essential to identify and employ appropriate indicators based on specific guidelines. This study adopts an analytical-descriptive approach, collecting data from 2014 to 2019 through documentary research and surveys. The goal is to identify the influential indicators for evaluating the efficiency of commercial banks in Iran, as determined by a panel of experts. These indicators are then prioritized using factor analysis and the Fuzzy Delphi method. The findings reveal the existence of 19 key factors that determine bank efficiency, categorized into 7 main groups. These factors encompass financial, human, environmental and geographical, structural and organizational, physical, technical, and financial ratios. Together, they account for 62.45% of the total variance and serve as the most significant inputs and outputs that explain and determine the efficiency of commercial banks in Iran.

Keywords

References

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Identification and Prioritization of Banks' Efficiency Evaluation Indicators Using Factor Analysis and Fuzzy Delphi Method

References

References

Volume 27, Issue 3October 2024Pages 1-28

Volume 27, Issue 3
October 2024
Pages 1-28