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Modelling Bank Performance: A Network DEA Approach

Fukuyama, Hirofumi, Matousek, Roman (2017) Modelling Bank Performance: A Network DEA Approach. European Journal of Operational Research, 259 (2). pp. 721-732. ISSN 0377-2217. (doi:10.1016/j.ejor.2016.10.044) (KAR id:58462)

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Official URL
https://dx.doi.org/10.1016/j.ejor.2016.10.044

Abstract

In this paper, we develop a bank network revenue function to evaluate banks’ network revenue performance. The bank network revenue function, which extends the environmental revenue function and the two-stage network cost function, is constructed as the difference between total revenue and the reserves for possible loan losses to incorporate the roles played by non-performing loans in bank production. The second part of the paper then applies Nerlove's revenue inefficiency model. We consider revenue maximization in two stages. We apply this function to Japanese banks operating from September 2000 to March 2013.

Item Type: Article
DOI/Identification number: 10.1016/j.ejor.2016.10.044
Uncontrolled keywords: Data Envelopment Analysis; Bank revenue function; Japanese banks; non-performing loans; two stage network DEA
Subjects: H Social Sciences > HG Finance
Divisions: Divisions > Kent Business School - Division > Kent Business School (do not use)
Depositing User: Roman Matousek
Date Deposited: 09 Nov 2016 08:15 UTC
Last Modified: 03 Mar 2021 17:06 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/58462 (The current URI for this page, for reference purposes)
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