Risk management and managerial efficiency in Chinese banks: A network DEA framework
نویسنده
چکیده
Risk management in Chinese banks has traditionally been the Cinderella of its internal functions. Political stricture and developmental imperative have often overridden standard practice of risk management resulting in large non-performing loan (NPL) ratios. The training and practice of risk managers remain second class compared with foreign banks operating in China. This paper surveys Chinese bank risk managers and constructs metrics of risk management practice and risk management organisation. The metrics are used as intermediate inputs in a Network DEA framework to produce a measure of income efficiency. A statistical test is carried out to assess the importance of the risk metrics in evaluating bank income efficiency. & 2012 Elsevier Ltd. All rights reserved.
منابع مشابه
Risk management and managerial efficiency in Chinese banks: A network DEA framework
Risk Management in Chinese banks has traditionally been the Cinderella of its internal functions. Political stricture and developmental imperative have often overridden standard practice of risk management resulting in large non-performing loan (NPL) ratios. One of the stated aims of opening up the Chinese banks to foreign strategic investment is the development of risk management functions. In...
متن کاملDesigning A Mixed System of Network DEA for Evaluating the Efficiency of Branches of Commercial Banks in Iran
One of the most important applications of data envelopment analysis tech-nique is measuring the efficiency of bank branches. Performance measure-ment in the banking industry is important for several groups, including bank managers, customers, investors, and shareholders. The purpose of this study is to examine and design a mixed structure to measure the efficiency of branches of Iranian banks a...
متن کاملPerformance Evaluation of Banks Using DEA (Case study: Guilan Saderat Bank Branches)
Performance evaluation has been developed in the form of management schools along by managerial thought development. Banks and financial institutes are one of the most important economic sections to each country which by receipts and payments directing and organizing facilitate business and commercial transactions and develop markets and economic growth and as the main pillars in directing and ...
متن کاملRelative Efficiency Measurement of Banks Using Network DEA Model in Uncertainty Situation
Traditional DEA method considered decision making units (DMUs) as a black box, regardless of their internal structure and appraisal performance with respect to the final inputs and outputs of the units. However, in many real systems we have internal structure. For this reason, network DEA models have been developed. Parallel network DEA models are a special variation which inputs of unit alloca...
متن کاملEfficiency measures of the Chinese commercial banking system using an additive two-stage DEA
Measuring and improving the efficiency of the Chinese commercial banking system has recently attracted increasing interest. Few studies, however, have adopted the two-stage network DEA to explore this issue in the Chinese context. Because the entire operational process of the banking system could be divided into two sub-processes (deposit producing and profit earning), the evaluation of the sub...
متن کامل