Incorporating risk into bank efficiency: A satisficing DEA approach to assess the Greek banking crisis
We propose a satisficing DEA model to measure the efficiency of the Greek banks. LLP are treated as a stochastic controllable input variable. Haircut losses on Greek bonds are treated as an uncontrollable input variable. The proposed frontier screens further some of the best-in-class banks.
satisficing dea data envelopment analysis finance and banking mathematical programming