Title: Restructuring the branch network of a bank: the dynamic perspective

Authors: Wolfgang Barth, Matthias Staat

Addresses: University of Applied Sciences, HSF, Simrockstrasse 4, D-53113 Bonn, Germany. ' Carl-Benz-Strasse 16 a, D-69198 Schriesheim, Germany

Abstract: This study reports on results of a dynamic Data Envelopment Analysis of a bank|s branch network. The bank had merged with a local competitor and the resulting branch network was restructured. An initial analysis had led the management to implement a strategic network concept. To closely monitor the development of the branch system, a series of indicators for productivity and productivity change were calculated. Substantial shifts on the input-side due to restructuring bring about an initial decay of efficiency as well as productivity. The results show that the decay of network productivity slowed down during the final observation period.

Keywords: bank branches; DEA; data envelopment analysis; distribution system; efficiency; Malmquist index; system change; branch network restructuring; branch networks; productivity.

DOI: 10.1504/IJBSR.2008.020579

International Journal of Business and Systems Research, 2008 Vol.2 No.3, pp.272 - 284

Published online: 30 Sep 2008 *

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