This class exists in these courses :
• IÉSEG > IESEG Degree - Programme Grande École > Semester 2 > 2,00 ECTS
• IÉSEG > IESEG Degree - Programme Grande École > Semester 2 > 2,00 ECTS

Prerequisites

Micro-economics (mainly production theory).
A basic course in mathematical (e.g., linear) programming is a plus (but not needed).
Maximum 35 students allowed.
Follow the course: "Efficiency and Benchmarking in Banking: Regulatory & Managerial Perspectives"

Learning outcomes

Productivity measurement and benchmarking are crucial in management given the context of world-wide competition. OR and economic methods for evaluating efficiency are becoming basic tools for performance improvement. These methods have also been applied to banks and the results received a strong interest from bank managers.
This course serves 3 purposes:
(i) to develop an intuitive understanding of the different notions of productivity,
(ii) their meaning in the banking industry,
(iii) the application of the basic measurement tools and the managerial interpretation of its results within the same sector.

At the end of the course, the student should be able to:
- understand production processes
- understand the various notions of productivity
- interpret efficiency measures
- understand the scope for applications in banking and other industries.

Course description

The topics treated in the course include the following:
- Productivity in financial services
- Sources of productivity
- U.S. Case studies: Efficiency in commercial banks, credit unions, within a holding bank, among others
- European Case studies: Efficiency in a Greek, a Cypriote and some UK banks

Class type

Class structure

Teaching methods

• E-learning
• Interactive class
• Research
• Tutorial

Assessment

Participation in discussions, team presentation and simple report: 40%
Final exam (open book): multiple choice and open-ended questions: 60%

Recommended reading

• * Articles to select a case (precise list varies from year to year): Athanassopoulos, A., D. Giokas (2000) The Use of Data Envelopment Analysis in Banking Institutions: Evidence from the Commercial Bank of Greece, Interfaces, 30(2), 81-95. -

• Golany, B., J.E. Storbeck (1999) A Data Envelopment Analysis of the Operational Efficiency of Bank Branches, Interfaces, 29(3), 14-26. -

• Hartman, T.E., J.E. Storbeck (1996) Input Congestion in Loan Operations, International Journal of Production Economics, 46-47, 413-421. -

• Hartman, T.E., J.E. Storbeck, P. Byrnes (2001) Allocative Efficiency in Branch Banking, European Journal of Operational Research, 134(2), 232-242. -

• Zenios, C.V., S.A. Zenios, K. Agathocleous, A.C. Soteriou (1999) Benchmarks of the Efficiency of Bank Branches, Interfaces, 29(3), 37-51. -

• * Lidi, J. (1991) US Bankcorp seeks savings via branch-analysis system, American Banker, 156(195), 3. -

• * Norton, R. (1994) Which Offices or Stores Really Perform Best? A New Tool Tells, Fortune, 136(9), 26. -

• Barth, W., M. Staat (2008) Restructuring the Branch Network of a Bank: The Dynamic Perspective, International Journal of Business and Systems Research, 2(3), 272-284. -

Internet resources

• This course has its own web page at the intranet with additional material (Excel and LINDO files) and some interesting links. Students are invited to explore it.