Abstract
Recently, the loan-deposit gap of Japanese regional banks has been increased, and interest on loans and bills discounted has been decreased. Along with that, fee-based business and marketable securities investment has been increased. The management situation of Japanese regional banks has been diversified. In addition to that, management integration of Japanese regional banks has been accelerated.
Data Envelopment Analysis (DEA) is a widely used method to evaluate bank's management efficiency. To evaluate the management efficiency of Japanese regional banks, there is a limit in traditional simple DEA model. This study applies Dynamic Network DEA model to evaluate the management efficiency of Japanese regional banks. Furthermore, the objective of this research is to evaluate the effectiveness of management integration of Japanese regional banks.