Efficiency of Brazilian banks: a data envelopment analysis

• Grant number: 13/17475-1
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: November 01, 2013
• End date: October 31, 2014
• Field of knowledge: Applied Social Sciences - Economics - Quantitative Methods Applied to Economics
• Principal Investigator: Ana Elisa Périco
• Grantee: Luiza Vique Tedeschi
• Host Institution: Faculdade de Ciências e Letras (FCL). Universidade Estadual Paulista (UNESP). Campus de Araraquara. Araraquara , SP, Brazil

Abstract

Studies regarding efficiency received more relevance in organizations of open markets, which have started in Brazil in the 90's. That context can be seen equally in the industry, market and services provider institutions. The banks are on the core of this intense dispute to attract clients and, consequently, get more space in the market. The project's purpose is to analyze, by Data Envelopment Analysis, the efficiency of the 20 biggest multiple and commercial banks installed in the country, using the database "The Biggest Banks", published periodically by the Central Bank of Brazil, between 2009 and 2013. The reason to implement this project refers to two changes proposed by the Federal Government, in order to make the Bank-Client relationship more transparent and positive, and that affect these financial institutions' income: standard tariff charges and standardized services (2008) and interest rate reduction to the consumers proposed by the Federal Government (2012). From these changes, the purpose of this project is to measure if these banks, based on Brazil, are efficient or not, taking into account the hypothesis that for a long time the profitability of the banks hid these institutions' weaknesses.