The Brazilian Banking System: A performance analysis through the DEA

Abstract

This article aims to measuring the efficiency of the Brazilian banking market through a temporal analysis (2001-2007) of banks in activity in the country. To this end, based on data extracted from the Report of the 50 largest banks of BC, it is suggested to use the DEA methodology for assessing the performance of public and private banks, whether of domestic or foreign control. The results showed there some institutions 100% efficient, they have an excellent combination of inputs and outputs, without the need for improvements. Moreover, there is no correlation between size and efficiency in the analysis of the segments. This shows that in these segments, there is no advantage of large banks in relation to medium and small, that is not the size, but the performance that creates competitiveness.