Efficiency of Commercial Banks Operating in Federation of Bosnia and Herzegovina Using DEA Method

Main objective of this research is to measure an efficiency of commercial banks operating in Federation of Bosnia and Herzegovina in period 2016-2017. An analysis is conducted over 12 banks that had positive overall profit lost at the end of 2016 and 2017 years published by Banking Agency of Federation of Bosnia and Herzegovina. Data Envelopment Analysis (DEA) method with two input and three output parameters is used for efficiency measurement. Each bank's efficiency is presented for 2016 and 2017 years. For observed period, large banks showed more efficient than small banks. Based on the results shown in this research and features used in this model there is significant difference in relative efficiency of top two banks and rest of 10 banks