An efficiency tool: application of CCR and SBM models in measuring commercial banks‘ performance in Malaysia / Norfarziah Adna ...[et al.]

Bank efficiency is very important in the banking
industry. There are many methods involved to measure the
efficiency of bank performance. This paper focuses on Slack
Based Measure (SBM) and Charnes, Cooper, and Rhodes
(CCR) model by comparing the result of efficiency. SBM gives
the input excesses and output shortfalls for a decision many
units (DMU) concerned. Meanwhile the CCR was interpreting
as a reduction of the multiple outputs or multiple input situation
for each DMU to a single “virtual output” and virtual input.”
Furthermore, the result from this research states using SBM
model give a value of input excesses and output shortfalls for
each bank inefficient. The result also indicates that SBM score
efficiency for bank inefficient is less than CCR score efficiency