Title: Bank efficiency in Brazil: the importance for economic sustainability

Authors: Ana Elisa Périco; Naja Brandão Santana; Daisy Aparecida do Nascimento Rebelatto

Addresses: Departamento de Economia, Universidade Estadual Paulista, Rod. Araraquara-Jaú Km 1, Machados, Araraquara, São Paulo, CEP 14.800-901, Brasil ' Escola de Engenharia de São Carlos, Departamento de Engenharia de Produção, Universidade de São Paulo, Av. Trabalhador São-carlense, 400, Arnold Schimidt, São Carlos, São Paulo, CEP 13.566-590, Brasil ' Escola de Engenharia de São Carlos, Departamento de Engenharia de Produção, Universidade de São Paulo, Av. Trabalhador São-carlense, 400, Arnold Schimidt São Carlos, São Paulo, CEP 13.566-590, Brasil

Abstract: Studies on efficiency achieved greater relevance in organisations within an open market framework, which in Brazil began around 1990. The objective of this paper, applying the data envelopment analysis methodology, is to analyse the efficiency of banks operating in the country using the database termed 'the biggest banks', periodically divulged by the Central Bank of Brazil in 2010-2012. The methodology was applied to the 26 largest banking organisations via two approaches, one was financial intermediation and the other was results. In the financial intermediation approach, the efficiency increase was the highest among banks specialised in credit from 2010 to 2012. Retail banks, especially the large ones, felt most intensely the reaction of 2011, a year considered as the sector's low performance year. In the results approach, the efficiency increase was higher among retail banks. Factors such as retractions in the SELIC rate and bank spreads impacted all banks, regardless of the segment.

Keywords: bank competition; retail banks; credit specialists; financial intermediation; bank results; variable returns to scale; banking efficiency; data envelopment analysis; DEA; Brazil; economic sustainability; sustainable development.

DOI: 10.1504/LAJMSD.2014.065482

Latin American Journal of Management for Sustainable Development, 2014 Vol.1 No.2/3, pp.194 - 212

Received: 21 Jan 2014
Accepted: 19 May 2014
Published online: 12 Nov 2014 *

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