Efficiency Evaluation Of The Banks In Uzbekistan

The development of financial system in Uzbekistan over the last decade puts lots of challenging tasks for the managers of the financial institutions and regulatory bodies.These tasks on its turn demand application of new innovative approaches into the banking system.As a reflection from these issues this paper seeks to apply relatively new method of efficiency measurement Data Envelopment Analysis(DEA).For measuring the efficiency it uses two basic DEA models under the assumptions of constant and variable returns to scale.By using these analyses it seeks to measure and break down the efficiency levels of Uzbek banks during 2007-2016.The results have shown that the overall efficiency levels of banks on average decreased during this period.The main reason of inefficiency was due to the technology factor.This finds that banks are inconsistent with global advantage and poor information management system of the banks.By going further with data envelopment analysis(DEA)analysis,I was able to investigate the reasons for inefficiency for each individual bank.I then compared the relative performance between the private,joint-stock and foreign banks for which no significant divergence were found.The investigation of differences between the small,medium and large banks lead to the observation of significant difference between the small and medium sized banks.