Measuring the Technical Efficiency of Banks in Singapore for the Period 1993-99: an Application and Extension of the Bauer Et Al. (1997) Technique‪.‬

I. Introduction Over the past two decades, the measurement of financial institution efficiency using non-parametric frontier models has received considerable attention. However, while the literature on the application of data envelopment analysis (DEA) to the area of bank efficiency measurement is burgeoning, research on the salient properties of efficiency scores as a tool of policy is comparatively rare. The paucity of empirical research in this key area seems perplexing, especially when one recognizes that policy-makers need accurate assessments about the effects of their decisions on the institutions they supervise.