Bank Efficiency

Bank efficiency refers to how well a bank uses its resources—like staff, technology, and capital—to generate income and serve customers, while minimizing costs. A more efficient bank can provide quality services quickly and reliably without unnecessary expenses, leading to better profitability and competitiveness. Essentially, it measures how effectively a bank converts inputs into outputs, balancing customer satisfaction with operational cost management. High efficiency indicates optimal use of resources, whereas lower efficiency suggests there may be room to improve processes and reduce waste.