Modelling bank performance: a network DEA approach

Fukuyama, Hirofumi and Matousek, Roman (2017) Modelling bank performance: a network DEA approach. European Journal of Operational Research, 259 (2). pp. 721-732. ISSN 0377-2217

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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
Keywords: Data Envelopment Analysis; Bank revenue function; Japanese banks; Non-performing loans; Two stage network DEA
Schools/Departments: University of Nottingham, UK > Faculty of Social Sciences > Nottingham University Business School
Identification Number: https://doi.org/10.1016/j.ejor.2016.10.044
Depositing User: Eprints, Support
Date Deposited: 08 May 2018 12:47
Last Modified: 28 Oct 2018 04:30
URI: http://eprints.nottingham.ac.uk/id/eprint/51626

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