Special Issue INTERNATIONAL JOURNAL OF HUMANITIES AND March 2016 CULTURAL STUDIES ISSN 2356-5926

Investigation of the efficiency of bank Mellat branches of the through stochastic frontier analysis (SFA)

Mehdi Shokri1 Department of governmental management, Aliabad branch, Islamic Azad University, Aliabad,

Abstract

The present study aims to explore the technical efficiency, the allocative efficiency, and the economic efficiency of the Mellat Bank branches in Golestan province and to determine the yields in proportion to their scale and rating using the Scochastic Frontier Analysis (SFA) model which is based on economy-assessment models and micro-economics theories. Regarding the purpose, the research methodology seems to be practical and considering the method, it is considered to be causative and comparative in which the events were elicited from the past information. The statistical population of the research consists of 40 Bank Mellat branches in this Northern Province of Iran. To reach this goal, the identical research and literature were first investigated. After finding out input and output data ,the amount of efficiency of each branch during 2009-2011 was calculated. Then, with the help of the Scochastic Frontier Analysis model as well as the software "Frontier", efficiency of the branches was assessed and determined. The results of this 3-year research reveal that the mean of the technical efficiency, the allocative efficiency, and the economic efficiency in 2009 is 69.4, 59.8, and 44.8 respectively. While in 2010, the average of the technical efficiency is 70.8, the allocative efficiency is equal to 61, and the economic efficiency amounts to 47.4.In 2011, the mean of the technical efficiency, the allocative efficiency, and the economic efficiency amounts to 33.3, 44.3, and 18.5 respectively. It indicates that the means of the technical efficiency, the allocative efficiency, and the economic efficiency during 2010 in comparison to those in 2009 have increased. However, the means of the technical efficiency, the allocative efficiency as well as the economic efficiency in 2011 in comparison with 2010 have decreased. It shows that the main inefficiency is due to the inefficiency of (technical) management. Therefore, instead of paying attention to the size of the banks in terms of the amount of the banking operation volume, specialized staff such as experts and managers must be employed to promote the performance and improve the efficiency of the banks.

Keywords: Technical Efficiency, Allocative Efficiency, Economic Efficiency, Yield in proportion to scale, Scochastic Frontier Analysis, Bank Mellat.

1 Correspond author, E-mail: [email protected] http://www.ijhcs.com/index.php/ijhcs/index Page 1435

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1. Introduction One of the key issues that dramatically noticed in the economics literature, is measuring the efficiency of production units, institutions and different organizations. This comes from the fact that in the current situation we are facing a shortage of resources and this limited and minimum resources should be allocate in a way that enable the organization to maximize the production of goods or services (Shokri, 2012). in developing countries, Low level of efficiency in many manufacturing and service organizations, is a major problem and lack of adequate amount of capital formation added to it; which is due to lack of financial inputs and financial markets of these countries. Because credit and financial inputs could reduce financing costs and increase the rate of capital formation by equipping their own resources and allocating them efficiently. In our country according to the climate of government banking system, and also banking law, investigation of the efficiency of the banking system and how to use resources to achieve these objectives, is from under discussion issues (Alvani et al, 2012). Despite the extensive studies in the field of banking industry inside and outside of the country, evaluating the efficiency of branches is less considered than the efficiency of the banking industry and despite the importance of the topic, studies in this field has not been attractive for researchers. Perhaps this is because of the governmental banking system in the past three decades and the lack of the transparency of banking data and purposes within the framework of economic criteria (maximizing profit). But now, performing such studies is considered to be useful; because of the climate of privatization of banks and necessity to increasing the tendency to efficiency (Karimi, 2002). One of the basic ways of the regulating improvement of the efficiency and effectiveness at the level of a bank is existing an effective network of the branches; and to this end it is necessary for each bank to be aware of the efficiency of its own branches and checking the factors affecting inefficiency of their branches and change inefficient branches to efficient ones by proper planning and correction and guidance (Khaled, 2004). Current study asserts that measuring the efficiency process of the bank Mellat branches of the Golestan province during a three-year period using stochastic frontier analysis (SFA). So the basic question of the current study is that how is the efficiency of the bank Mellat branches of the Golestan province using stochastic frontier analysis model. As well as the specific questions of the study are as follows: 1. Could the technical efficiency of bank Mellat branches of the Golestan province measured by stochastic frontier analysis model? 2. Could the Allocative efficiency of bank Mellat branches of the Golestan province measured by stochastic frontier analysis model? 3. Could the economical efficiency of bank Mellat branches of the Golestan province measured by stochastic frontier analysis model? 4. How look like the Status ratings of bank Mellat branches of the Golestan province using stochastic frontier analysis model?

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2. Literature review Based on the existing studies, generally there are two distinct ways to measuring efficiency, named parametric and non-parametric (Greene, 1980). Also there are two general approaches about how to order the outputs and data in the models that named mediator attitude and productive attitude. Past studies, have used different methods to measuring efficiency. For example, some of them are considered financial ratios as an indicator to measuring efficiency (Aigner & Chu, 1968). Since the production technology is always unknown, Inefficiency must be measured and compared by a criterion which is normally costs or production index that obtained through data and statistical tools (Aly et al., 1982). in fact, measurement of the efficiency or inefficiency is measure of the cost deviation or system data consumption from minimal which obtained before the statistical data. Generally, different methods for measuring efficiency, is largely dependent on the assumptions used to measure or estimate this comparing index (Berger and Humphrey, 1991).

3. Methodology The research method is descriptive from causal-comparative type. The data have been obtained by refering to the basic financial statements of bank Mellat branches of Golestan province. Data collection in this study is a combination of field and library studies; So that primarily collected data information is structured financial event which obtained by referring to the documents and financial statements of the Golestan province branches. Secondly, literature of the study collected by using to books, papers and theses. The statistical population in this study is consist of all bank Mellat branches of Golestan province which are 40 branches. Finally effectiveness and efficiency of the branches was measured by Stochastic Frontier Analysis (SFA) method through Frontier software. 4. Statistical Analysis Statistical analysis included measurement of efficiency and the rating of bank Mellat branches in Golestan province are presented below in table format. 4.1. Results of the measurement of efficiency The results of measuring technical, allocative, and economic efficiency of the studied branches during period of 2008-2010 are presented in table 1. Table 1: Comparing technical, allocative, and economic efficiency of bank Melat branches of Golestan province (period of 2008-2010) No Technical efficiency Allocative efficiency Economic efficiency Name . 2008 2009 2010 2008 2009 2010 2008 2009 2010 1 Aq-ghala 59.6 47.0 14.0 44.0 39.2 32.4 26.2 18.4 4.5 2 Bandargaz 100 100 25.1 94.2 96.4 50.7 94.2 96.4 12.7 Bandar 3 89.7 83.9 21.3 63.6 56.6 35.5 57.0 47.5 7.6 Turkmen Ali abad 4 (Bulvar 82.1 75.0 30.2 45.5 40.2 30.0 37.4 30.2 9.1 Jahad) 5 Gonbad 35.6 31 7.5 25.2 23.2 20.9 8.8 7.2 1.6

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Kavoos (Imam Khomeini) 6 (Imam 40.5 32.9 30.7 36.3 35.6 27.1 14.7 11.7 8.3 Khomeini) Ali abad 7 (Imam 59.2 59.4 12.9 58.9 58 47.6 34.9 34.5 6.1 Reza) Gorgan 8 (Imam 100 100 24.8 71.1 66.6 54.7 71.1 66.6 13.6 Reza) Gorgan 9 (Karimi 60.9 52.5 20.9 55.5 50.1 30.1 33.8 26.3 6.3 Sq) 10 Fazal abad 53.6 49.2 13.8 48.8 48.0 35.9 26.2 23.6 5 Gorgan 11 55.8 55 33.0 45.0 46.0 26.4 25.1 25.3 8.7 (Felestin) 12 Galikesh 29.3 21.3 6.4 34.4 33.1 31.3 10.1 7.1 2.0 Gorgan 13 85.8 87.2 17.9 80.1 82.6 55.4 68.7 72.0 10.0 (Jorjan ) Khan 14 49.2 54.5 19.6 39.8 37.7 35.3 19.6 20.5 6.9 behbin 15 Kordkooy 78.9 71 21.4 68.7 61.2 35.3 54.2 43.5 4.9 Gonbad 16 Kavoos 100.0 94.3 41.4 64.5 60.7 22.7 64.5 57.2 9.4 (Markazi) Kalaleh 17 (Makhtoo 28.0 30.6 10.0 56.5 55.8 54.1 15.8 17.1 5.4 mgholi) Ali abad 18 100.0 100.0 54.1 67.7 78.8 24.2 67.7 78.8 13.1 (Markazi) 19 100.0 100.0 37.6 91 94.4 50.7 91 94.4 19.1 (Markazi) Gorgan 20 53.0 81.0 71.7 53.6 76.7 22.3 38.4 62.1 16.0 (Markazi) Kalaleh 21 65.5 60.2 23.6 54.3 51.4 31.6 35.6 30.9 7.5 (Markazi) Gorgan 22 (Abasali 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 88.0 Sq) 23 Gorgan 87.7 88.4 34.5 58.6 63 49.6 51.4 55.7 17.1

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(Meydanba r) Gorgan 24 (Mofateh 80.3 97.2 27.2 52.7 53.7 43.4 42.3 52.2 11.8 Sq) Gorgan 25 (Modarres 100 100 24.1 74.9 78.2 73.1 74.9 78.2 17.6 Sq) Gorgan 26 (Vahdat 80.4 85.5 20.7 83.2 86.8 57.8 66.9 74.2 12.0 Sq) Minoodash 27 75.6 71.6 26.4 51.7 56.7 30.9 39.1 40.6 8.2 t Gorgan 28 (Naharkhor 49.3 50.9 10.4 59.6 62.6 51.5 29.4 31.9 5.4 anjonoobi) Gorgan 29 (Naharkhor 58.8 48.0 17.0 34.1 31.4 24.8 20.1 15.1 4.2 anshomali) 30 Nokandeh 81.5 100 100 80.1 100 100.0 62.3 100.0 100 Gorgan 31 (panj e 49.2 50.4 16.7 52.8 53.7 39.0 26.0 27.1 6.5 azar) 32 67.8 100 100 58.5 56.1 49.7 39.7 56.1 49.7 Gonbad 33 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 (Sabah) Gorgan 34 (Shahid 62.3 52.4 18.7 53.9 50.5 30.8 33.6 26.5 5.8 Beheshti) Gorgan 35 (Shahid 27.2 33.9 15.6 37.5 41.1 29.9 10.2 13.9 4.7 Rajaei) Gorgan 36 48.8 37.0 16.7 34.6 36.2 26.4 16.9 13.4 4.4 (Shohada) Gonbad 37 (Taleghani 49.0 74.6 16.3 52.6 50.6 43.3 25.8 37.7 7.1 ) Gonbad 38 (Tarakeme 61.5 84 28.4 61.9 82.7 45.2 38.1 69.5 12.8 h) Gorgan 39 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 (Valieasr)

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Gonbad 40 (Voshmgir 68.4 70.2 20.4 47.1 45.7 35.4 32.2 32.1 7.2 ) M ea 69.4 70.8 33.3 59.8 61.0 44.3 44.8 47.4 81/5 n

Comparing the results of technical efficiency of bank Melat branches of Golestan province during period of 2008-2010 (table 1) shows that the efficiency of the Gorgan (Abasali Sq), Gonbad Kavoos (Sabah), and Gorgan (Valieasr)branches has been steady and unchanged over the period of study. In the other words, this branches were technically efficient in the years of study; and the efficiency of the some branches such as: aq ghala, Bandar Turkmen, Aliabad (Bulvar Jahad), Gonbad Kavoos (Imam Khomeyni), Gorgan (Imam Khomeyni), Gorgan (Karimi Sq), Fazel Abad, Gorgan (Felestin), Galikesh, , Gonbad kavoos (Markazi), Kalaleh (Markazi), Minoodasht, Gorgan (Naharkhoran shomali), Gorgan (Shahid beheshti), and Gorgan (Shohada) has been reduced. Also the results showed that efficiency of the some branches such as: Bandargaz, Aliabd (Imam Reza), Gorgan (Jorjan), Khanbebin, Kalaleh (Makhtoomgholi), Aliabad (Markazi), Azadshahr (Markazi), Gorgan (Markazi), Gorgan (Meydanbar), Gorgan (Mofateh Sq), Gorgan (Modarres Sq), Gorgan (Vahdat Sq), Gorgan (Naharkhoran jonoobi), Nokandeh, Gorgan (Panje Azar), Ramian, Gorgan (Shahid Rajaei), Gonbad kavoos (Taleghani), Gonbad kavoos (Tarakeme), and Gonbad kavoos (Voshmgir) has not followed a regular order. In the other words, this branches were technically efficient in the years of study. Comparing the results of allocative efficiency also shows that the efficiency of the Gonbad Kavoos (Sabah), and Gorgan (Valieasr) branches has been steady and unchanged over the period of study; and the efficiency of the some branches such as: Gorgan (Imam Reza), aq ghala, Bandar Turkmen, Aliabad (Bulvar Jahad), Gonbad Kavoos (Imam Khomeyni), Gorgan (Karimi Sq), Fazel Abad, Galikesh, Kordkuy, Gonbad kavoos (Markazi), Kalaleh (Markazi), Gorgan (Naharkhoran shomali), Gorgan (Shahid beheshti), Aliabd (Imam Reza), Khanbebin, Kalaleh (Makhtoomgholi), Ramian, Gonbad kavoos (Taleghani), and Gonbad kavoos (Voshmgir) has been reduced. Also the results showed that efficiency of the some branches such as: Gorgan (Abasali Sq), Gorgan (Felestin), Gorgan (Shohada), Bandargaz, Gorgan (Jorjan), Aliabad (Markazi), Azadshahr (Markazi), Gorgan (Markazi), Gorgan (Meydanbar), Gorgan (Mofateh Sq), Gorgan (Modarres Sq), Gorgan (Vahdat Sq), Gorgan (Naharkhoran jonoobi), Nokandeh, Gorgan (Panje Azar), Gorgan (Shahid Rajaei), Gonbad kavoos (Tarakeme). has not followed a regular order. In the other words, this branches were allocative efficient in the years of study. Comparing the results of economical efficiency also shows that the efficiency of the Gonbad Kavoos (Sabah), and Gorgan (Valieasr) branches has been steady and unchanged over the period of study; and the efficiency of the some branches such as: Gorgan (Imam Khomeyni), Gorgan (Karimi Sq), Gorgan (Imam Reza), aq ghala, Bandar Turkmen, Aliabad (Bulvar Jahad), Gonbad Kavoos (Imam Khomeyni), Fazel Abad, Galikesh, Kordkuy, Gonbad kavoos (Markazi), Kalaleh (Markazi), Gorgan (Naharkhoran shomali), Gorgan (Shahid beheshti), Aliabd (Imam Reza), Gorgan (Shohada), and Gonbad kavoos (Voshmgir) has been reduced. Also the results showed that efficiency of the some branches such as: Gorgan (Abasali Sq), Gorgan (Felestin), http://www.ijhcs.com/index.php/ijhcs/index Page 1440

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Minoodasht, Gorgan (Jorjan), Khanbebin, Gorgan (Meydanbar), Gorgan (Mofateh Sq), Gorgan (Modarres Sq), Gorgan (Vahdat Sq), Gorgan (Naharkhoran jonoobi), Nokandeh, Gorgan (Panje Azar), Ramian, Gorgan (Shahid Rajaei), Gonbad kavoos (Taleghani), Gonbad kavoos (Tarakeme), Kalaleh (Makhtoomgholi), Aliabad (Markazi), Azadshahr (Markazi), Gorgan (Markazi), and Bandargaz has not followed a regular order. In the other words, this branches were allocative efficient in the years of study.

4.2. Ranking the branches of Bank Mellat of the Golestan Province In this study, weight sum of the times earned method was used to Ranking the under studied branches. This method is based on the referring to sum of the weight of the efficient units (which are considered as a pattern for other units). The results for the period of 2008-2010 are presented in tables 2 to 7.

Table 2: Efficient branches and frequency and weights sum of the times of reffering to efficient branches in 2008 Number of times weights sum of the times of No Branch considered as reoffering reference 1 Bandargaz 29 1675.3 Gorgan (Imam 2 15 778.7 Reza) Gonbad Kavoos 3 12 244.5 (Markazi) Aliabad 4 10 213.8 (Markazi) Azadshahr 5 5 223.5 (Markazi) Gorgan (Abasali 6 5 246.5 Sq) Gorgan 7 2 104.7 (Modares Sq) Gonbad Kavoos 8 7 124.4 (Sabah) Gorgan 9 10 213 (Valiasr)

At this part, according to the output of Frontier software, times in which an efficient branch considered as reference along with weights sum of the times of referring to that branch in 2008 is presented in table (2). For example Bandargaz branch, 29 times has been selected as reference for different branches that weight sum of the times of referring to this branch has been 167.53

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percent. Based on the obtained numbers which presented in the last column of Table (2), the branches will be ranked and the results are presented in table (3). Table 3: ranking of bank Melat branches of Golestan province in 2008 Branch rank Bandaregaz 1 Gorgan (Imam Reza) 2 Gorgan (abasali Sq) 3 Gonbad Kavoos (Markazi) 4 Azadshahr (Markazi) 5 Ali Abad (Markazi) 6 Gorgan (Valiasr) 7 Gonbad kavoos (sabah) 8 Gorgan (Modares Sq) 9 Bandar Turkmen 10 Gorgan (Meydanbar) 11 Gorgan (Jorjan) 12 Aliabad (Bulvar jahad) 13 Nokandeh 14 Gorgan (Vahdat Sq) 15 Gorgan (Mofateh Sq) 16 Kordkuy 17 Minoodasht 18 Gonbad (Voshmgir) 19 Ramian 20 Kalaleh (Markazi) 21 Gorgan (Shahid Beheshti) 22 Gonbad Kavoos (Tarakemeh) 23 Gorgan (Karimi Sq) 24 Aq ghala 25 Aliabad (Imam Reza) 26 Gorgan (Naharkhoran Gorgan) 27 Gorgan (Felestin) 28 Fazelabad 29 Gorgan (Markazi) 30 Gorgan (Naharkhoran Jonoobi) 31 Gorgan (Panj azar) 32 khanbebin 33 Gonbad (Taleghani ) 34 Gorgan (shohada) 35 Gorgan (Imam Khomeyni) 36

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Gonbad kavoos (Imam Khomeyni) 37 Galikesh 38 Kalaleh (Makhtoomgholi) 39 Gorgan (Shahid Rajaei) 40

The results of ranking of technical efficiency of the branches of bank Melat in 2008 are presented in table (3). According to these results, Bandargaz branch of bank melat with the highest total weight (1675.3 percent) is in the first rank and of Gorgan (Shahidrajaei) branch with the lowest technical efficiency (27.2 percent) is in the last place.

Table 4: Efficient branches and frequency and weights sum of the times of reffering to efficient branches in 2009 Number of times weights sum of the times of No Branch considered as referring reference 1 Bandargaz 28 1805.1 Gorgan (Imam 2 3 234.7 Reza) Aliabad 3 15 429.4 (Markazi) Azadshahr 4 6 253.5 (Markazi) Gorgan (Abasali 5 2 110.8 Sq) Gorgan 6 4 167.7 (Modares Sq) 7 Nokandeh 7 329.3 8 Ramian 9 367.7 Gonbad Kavoos 9 1 100.0 (Sabah) Gorgan 10 13 262.5 (Valiasr)

Table (4) like table (2) presents times in which an efficient branch considered as reference along with weights sum of the times of referring to that branch in 2009. For example Bandargaz branch, 13 times has been selected as reference for different branches that weight sum of the times of referring to this branch has been 262.50 percent.

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Table 5: ranking of bank Melat branches of Golestan province in 2009 Branch rank Bandaregaz 1 Ali Abad (Markazi) 2 Ramian 3 Nokandeh 4 Gorgan (Valiasr) 5 Azadshahr (Markazi) 6 Gorgan (Imam Reza) 7 Gorgan (Modares Sq) 8 Gorgan (abasali Sq) 9 Gonbad kavoos (sabah) 10 Gorgan (Mofateh Sq) 11 Gonbad Kavoos (Markazi) 12 Gorgan (Meydanbar) 13 Gorgan (Jorjan) 14 Gorgan (Vahdat Sq) 15 Gonbad Kavoos (Tarakemeh) 16 Bandar Turkmen 17 Gorgan (Markazi) 18 Aliabad (Bulvar jahad) 19 Gonbad (Taleghani ) 20 Minoodasht 21 Kordkuy 22 Gonbad (Voshmgir) 23 Kalaleh (Markazi) 24 Aliabad (Imam Reza) 25 Gorgan (Felestin) 26 khanbebin 27 Gorgan (Karimi Sq) 28 Gorgan (Shahid Beheshti) 29 Gorgan (Naharkhoran Jonoobi) 30 Gorgan (Panj azar) 31 Fazelabad 32 Gorgan (Naharkhoran shomali) 33 Aq ghala 34 Gorgan (shohada) 35 Gorgan (Shahid Rajaei) 36 Gorgan (Imam Khomeyni) 37 Gonbad kavoos (Imam Khomeyni) 38

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Kalaleh (Makhtoomgholi) 39 Galikesh 40

The results of ranking of allocative efficiency of the branches of bank Melat in 2008 are presented in table (5). Results showed that, Bandargaz branch of bank Melat with the highest total weight (1805.1 percent) is in the first rank and Galikesh branch with the lowest allocative efficiency (21.3 percent) is in the last place.

Table 6: Efficient branches and frequency and weights sum of the times of referring to efficient branches in 2010 Number of times weights sum of the times of No Branch considered as referring reference Gorgan (Abasali 1 5 1805.1 Sq) 2 Nokandeh 36 234.7 3 Ramian 9 429.4 Gonbad Kavoos 4 1 253.5 (Sabah) 5 24 110.8

Table (6) like table (4) presents times in which an efficient branch considered as reference along with weights sum of the times of referring to that branch in 2010. For example Nokandeh branch, 36 times has been selected as reference for different branches that weight sum of the times of referring to this branch has been 2795.7 percent. Table 7: ranking of bank Melat branches of Golestan province in 2010 Branch rank Nokandeh 1 Ramian 2 Gorgan (Valiasr) 3 Gorgan (abasali Sq) 4 Gonbad kavoos (sabah) 5 Gorgan (Markazi) 6 Ali Abad (Markazi) 7 Gonbad Kavoos (Markazi) 8 Azadshahr (Markazi) 9 Gorgan (Meydanbar) 10 Gorgan (Felestin) 11 Gorgan (Imam Khomeyni) 12

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Aliabad (Bulvar jahad) 13 Gonbad Kavoos (Tarakemeh) 14 Gorgan (Mofateh Sq) 15 Minoodasht 16 Bandaregaz 17 Gorgan (Imam Reza) 18 Gorgan (Modares Sq) 19 Kalaleh (Markazi) 20 Kordkuy 21 Bandar Turkmen 22 Gorgan (Karimi Sq) 23 Gorgan (Vahdat Sq) 24 Gonbad (Voshmgir) 25 khanbebin 26 Gorgan (Shahid Beheshti) 27 Gorgan (Naharkhoran Jonoobi) 29 Gorgan (shohada) 30 Gorgan (Panj azar) 31 Gonbad (Taleghani ) 32 Gorgan (Shahid Rajaei) 33 Aq ghala 34 Fazelabad 35 Aliabad (Imam Reza) 36 Gorgan (Naharkhoran shomali) 37 Kalaleh (Makhtoomgholi) 38 Gonbad kavoos (Imam Khomeyni) 39 Galikesh 40

The results of ranking of economical efficiency of the branches of bank Melat in 2008 are presented in table (7). Results showed that, nokande branch of bank Melat with the highest total weight (2795.7 percent) is in the first rank and Galikesh branch with the lowest allocative efficiency (6.4 percent) is in the last place.

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References 1. Aigner, D.J. and Chu, S.F. (1968). On Estimating the Industry Production American Economic Review, 58 (4): 826 – 839. 2. Alvani, S.M. Jandaghi, G., Reis safari, M. (2012). Investigation of the efficiency of banks branches and identifying factors effecting on it (case study: Tehran bank Sepah branches). Governmental management, No.3, pp: 1-18. (in Persian) 3. Aly H.Y., Grabowski, R., Pasurka, C. and Rangan, N. (1989). Technical, Scale, and Allocative Efficiencies in U.S. Banking: An Empirical Investigation, The Review of Economic and Statistics, 72 (2): 212-218. 4. Berger, A. N. and Humphrey, D. B. (1991). The Dominance of Inefficiencies over Scale and Product mix Economies in Banking, Journal of Monetary Economies, 28 (1): 119- 132. 5. Greene, W .H. (1980). Maximum Likelihood estimation of econometric frontier function, jour nal of econometrics, 31 (1): 27 – 35. 6. Karimi, M. (2012). Investigation of the efficiency of bank Keshavarzi branches and identifying factors effecting on it. M.Sc thesis of Tehran University, economic college. (in persian) 7. Khaled, A.H. (2004). Operational Efficiency in Islamic Banking: The Sudanese Experience. From :www.irti.org/sudan%20-banks.pdf-134k. 8. Shokri, M. (2002). Evaluating the efficiency of bank Mellat branches of Golestan province by stochastic frontier analysis model. M.Sc thesis of Aliabad-e-Katool Islamic Azad University, Management and accounting college. (in Persian)

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