Spanish bank development during the period 2005-2016

Abstract

One of the main problems that the banking sector is currently facing is "how to become efficient". Analyzing this issue is especially important because of the difficulty in determining its production function. The objective of this paper is to measure the efficiency of the largest banks in Spain by volume of assets in relation to their production function. For this, on the one hand, a theoretical framework has been elaborated where the different concepts, types and techniques of efficiency are explained. On the other hand, a description of the variables used for that analysis and the relation they have with the subject analyzed has been prepared. The DEA method has been used as a technique for estimating the results. All data have been extracted from the annual reports offered by the websites of the banks under study and the website of the Spanish Banking Association.