The monograph originated in response to a number of critical methodological issues that arise in technical efficiency measurement in banking, especially with a focus upon the branch level. Its ambition is to clear some ambiguities that continue to trouble empirical research in this field and that include the issue of selecting an appropriate model of banking or choosing a suitable comprehensive measure of technical efficiency. In addition, the monograph proposes for the most frequent technical efficiency measures a method for identification of sources from which possible technical inefficiency emanates.