This papers aims to analyze comparatively the technical efficiency of the banking sector in Nicaragua using Data Envelopment Analysis Approach. This technique helps to determine which banks serve as efficient references for those that are inefficient in terms of improving their potential performance. To achieve proportion, inefficient banks should reduce inputs in order to increase production to achieve efficiency. The efficiency will be measured in terms of cost efficiency and production. The banking sector in Nicaragua is structured by seven (7) Banks Companies, Six (6) of them are comprised of Private Capital and operate under Financial Holdings Companies; the last one belongs to the government.
