Dissertation for Master's Degree (M.A)
Trend: Executive Management
Abstract
Man's economic efforts have always been aimed at obtaining the maximum result with the least available facilities and factors. This tendency can be called achieving higher efficiency. Performance measurement is the most basic step to improve its level. The banking system plays a very important role in the economy of Iran, like other countries, but due to various reasons, there is a possibility that this system does not work efficiently. The purpose of this study is to estimate the efficiency of the branches of the Agricultural Bank of Ardabil province and the ways to improve the efficiency in these branches. This research deals with the estimation of efficiency in branches of Agricultural Bank of Ardabil province in the time domain of 2013. For this purpose, data envelopment analysis (DEA) method has been used. Also, this research is documentary in terms of collecting statistics and information. The statistical population of this research is the branches of Agricultural Bank of Ardabil province and the required information was collected and prepared from the statistics department of Agricultural Bank of the province. The results obtained from the DEA method show that out of the total efficiency of 39 branches of Agricultural Bank of Ardabil province, only 14 branches are efficient and the rest are inefficient. Also, the findings of the research show that;
1- The average technical efficiency in the selected branches of the Agricultural Bank of the province is 78%.
2- The average efficiency of the scale in the selected branches of the Agricultural Bank of the province is 68%.
Key words: efficiency, data coverage analysis, Agricultural Bank
Chapter One
General Research
1 1) Introduction
In the market-based economy, the banking system has a very heavy responsibility and is one of the most important economic components of the country. By providing financial capital for economic sectors, banks can provide suitable conditions for investment and increase employment and national production. Even by providing credit for professionals, banks can create new job opportunities and better distribution of income at the community level. In addition, by keeping cash and facilitating its transfer, banks protect personal and government property and internal and external exchanges. Banks also play an important role in economic stability as the agent of implementing monetary policies. The process of changes and developments in today's society is so fast and accelerated that it is impossible to predict the future, the movement of countries towards integration in the economic and cultural fields and the phenomenon of globalization have affected the economy and business patterns all over the world. Considering the huge economic developments, it is natural that the receiving and payment system is not exempted from this rule and has undergone new developments. Unlike in the past, when the banking system was very simple and was summarized in the bank's receiving and payment counters, today this system is witnessing new services in line with global developments. The electronic world has made it possible for the customer to do all his affairs through modern banking without the need to stand in long queues at the banks. Due to the complexity of all affairs in the present age, this possibility (not being present at the bank to perform banking operations) has solved many of our problems, because nowadays the lack of time and people's complaints due to not completing all their daily affairs is one of the basic problems of the world (Kord et al., 2013, 3).
Additionally The above items; Electronic banking by creating facilities such as ATM, Poz (point sale), Satna, etc. It has also facilitated economic affairs, because if we come to the point of comparison, the time spent to withdraw money from ATMs is incomparable to standing in long queues at the bank, filling out the money request form, etc.
1 2) Statement of the problem
Undoubtedly, economic, social and cultural development and improvement of living standards and creating more prosperity for the people are among the lofty goals of any economic system, but achieving these lofty and valuable goals is not easily possible and it requires detailed and comprehensive planning for the optimal use of all available facilities and talents in order to increase the gross domestic product, or in other words, national wealth and redistribute income and wealth in the society. is Today, in development approaches, only creating new capacities is not effective, but increasing efficiency and improving existing capacities, in other words, a combined approach, or in other words, simultaneous improvement of inputs and productivity.Today, in development approaches, it is not only the creation of new capacities that works, but increasing the efficiency and upgrading of existing capacities, and in other words, the combined approach, or in other words, the simultaneous promotion of inputs and their productivity, has been used as the main model of the development program, and it has played an effective role in accelerating the process of economic growth and development, and therefore, it is the most important strategy that has been proposed as the key to solving the problem of economic growth and progress in recent decades. In the meantime, for many developing countries where the lack of investment resources and low level of technology are negative factors for promoting social economic well-being, the increase in efficiency alone can create an important part of the growth of the gross domestic product and ensure the well-being of the members of the society (Nasiri and Sadr Haqiqi, 2014).
In addition to the above, the banking system in Iran's economy, like other countries, is a narrow stream of water that if If it is guided in the right direction and joins in a suitable place, it will become a river that makes the industry and economy green and watered. But according to the mentioned necessities; In banks, due to the low level of competition among employees, the impossibility of applying management due to predetermined conditions and variables, the fixed rate of granted facilities and the existence of higher inflation, the problems in granting facilities and the lack of a process of simplifying the provision of facilities within the framework of the usury-free banking law, the payment of debt facilities and the lack of capital increase of banks by the government, banks in Iran are probably not working efficiently. In other words, banks cannot have the maximum output by using the available inputs. It is obvious that the granting of credit facilities, which will be assumed in this research by the bank, can be increased to the extent of inefficiency assuming that the same level of inputs is constant.
The fact is that the bank plays an essential role in financing the country's medium-term and long-term economic plans due to its role as an intermediary in the money market and due to the insufficient development of the capital market. Considering the need to improve financial standards, using more accurate criteria to evaluate the efficiency of banks seems to be an undeniable necessity. It also seems that due to the lack of competition between banks, the restrictions caused by the laws and regulations of the banking system in the country's economy, the efficiency of the banking industry has always been the concern of the statesmen, because the weakness of the banking system can be considered a serious threat to the stability of the macro economy. In general, this research estimates the efficiency of the agricultural bank. In this research, the non-parametric frontier method, DEA is used.
1 3) Research objectives
Given that one of the basic objectives of the law of the fifth economic and social development program of the country is to improve productivity in different economic sectors and considering the central role of banks in the process of economic growth and development of the country, especially the country's monetary system, in this article the efficiency values ??of banks using the method Data envelopment analysis (DEA) is presented in order to identify the strengths and weaknesses of banks and provide solutions to improve their performance in order to optimally use the available resources.
1 4) The main question of the research
What is the relative efficiency of the Agricultural Bank of Ardabil Province?
1 5) Research hypothesis
Efficiency in the branches of the Agricultural Bank of the province in the border of efficiency (above the average (50%)).
1 6) The importance and necessity of research
Today, the alignment of world civilizations has taken a different form. We are moving full speed towards a completely different structure of power that will create a world that is no longer binary, but clearly divided between three opposing and competing civilizations. The symbol of the first civilization is still the hoe. The symbol of the second civilization is the assembly line and the symbol of the third civilization is productivity. In this world of three parts, the first wave part provides agricultural and mineral resources, the second wave part provides cheap labor and is engaged in mass production. The third wave is based on new ways of creating and exploiting knowledge. In addition, usually the lack of optimal use of limited resources and facilities has affected all aspects of human life, especially in developing countries and the third world, which has caused more gaps and distance. As a result, the ineffectiveness of tools, equipment and human resources leads to the lack of investment in creating new capacities as well as the lack of use of existing production and service capacities.
Given the above-mentioned necessities and the fact that one of the most important challenges of any organization is to improve the level of efficiency, the necessity of conducting such a research is strongly felt.