Credit Facilities Management by Developing Data Envelopment Analysis

Proper resource management with many applicants for banking facilities includes lack of attention to the issues that have caused major problems for the managers of these institutions. To help resource managers, many techniques have been used by researchers. Credit rating methods, which include a variety of models, can help managers. Data envelopment analysis is one of the most widely used nonparametric methods in credit rating. Although, using this method for ranking decision-making units (DMU) have been very well received by researchers, the homogeneity condition of DMUs is one of the most important rules in applying this technique. Therefore, in this paper we develop and improve DEA to apply for ranking firms in different industries and classes are also among industries (sectors) and among all companies. In other words, the main purpose of this paper is to resolve this key weakness in such a way that makes it possible to simultaneously consider the heterogeneous companies or DMUs. The results of this proposed method show that this model is high power useful to rank grouped units.