Operation efficiency evaluation of bank based on super efficiency DEA model

The aim of the research is to analysis of super efficiency DEA method and its application for operation efficiency measurement of a bank. The basic DEA model C²R model and super efficiency DEA method are used in the research. The study finds that Scale efficiency measures the lowest point on a long-term cost curve of a bank (i.e., at the optimum scale), the level of cost cut during the production. If output growth rate is higher than cost growth rate, the bank is in a state of scale efficiency and through business expanding, efficiency will improve. On the contrary, when the output growth rate is lower than the cost growth rate, the bank is in the state of scale inefficient. The expansion of business may cause the waste of resources. When output growth rate equals to the costs growth rate, the bank is in a constant state of scale efficiency. The research suggests that to make comprehensive calculating for the efficiency value and super efficiency value of a bank, with the result of measurement, we can evaluate the operation effectiveness for banks.