Measuring Japanese bank performance: a dynamic network DEA approach

Fukuyama, Hirofumi; Weber, William

doi:10.1007/s11123-014-0403-1

Cited by 118 publications

(83 citation statements)

References 39 publications

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“…Demir and Astarcıoglu () applied DEA to analyze the Turkish commercial banks' performance taking into consideration banks' total commercials, interest and non‐interest income and expenses, and the credits granted. The linkage between the ownership of bank and its impact on bank performance employing DEA has been examined by several earlier studies (Isik et al , ; Denizer et al , ; Lin and Zhang, ; Fukuyama and Weber, ; Tsolas and Charles, ). Beccalli () investigated the relation between bank performances and the investments in informatics.…”

Section: Research Backgroundmentioning

confidence: 99%

Sustainability in The Banking Industry: A Strategic Multi‐Criterion Analysis

2017

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The current paper aims to develop an effective and integrated MCDM model for the evaluation of the sustainability practices in the banking services, employing a multi‐stage, fuzzy MCDM model that integrates the Balanced Scorecard, fuzzy AHP and fuzzy TOPSIS. The approach aims to evaluate sustainability from the following four perspectives: financial stability, customer relationship management, internal business process and environment‐friendly management system. A real implementation dealing with the six largest commercial banks in India is discussed. The results highlights the critical aspects of the evaluation criteria and the issues in improving sustainable banking performances. Regarding the sustainability issues, it is shown that the environment‐friendly management system takes a back seat compared with the other criteria. Furthermore, the results show that there is a misunderstanding of the role that corporate social responsibility plays with respect to environmental issues. The developed evaluation model offers a valuable management tool for banks' administrators by assisting them in strategic choices in order to achieve their objective of sustainability and sustainable banking. Moreover, it offers a measuring tool with unique features that complements the emerging trend of integrated reporting considering uncertainty. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

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Section: Research Backgroundmentioning

confidence: 99%

Sustainability in The Banking Industry: A Strategic Multi‐Criterion Analysis

2017

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“…However, Malmquist productivity analysis is not able to fully reveal the overall main factors of bank operations, due to the “the effect of carry‐over activities” in two periods not being analyzed. Färe and Grosskopf () input interconnecting activities into dynamic DEA efficiency, followed by Sueyoshi and Sekitani (); Tone and Tsutsui (); Kao (); Tone and Tsutsui (); Chao, Yu, and Wu (); and Fukuyama and Weber ().…”

Section: Introductionmentioning

confidence: 99%

The operating efficiency of financial holding and nonfinancial holding banks—Epsilou‐based measure metafrontier data envelopment analysis model

et al. 2019

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Previous bank efficiency studies assumed that the same efficient frontier system exists in different types of banks, but the conventional radial data envelopment analysis (DEA) model slacks are not counted in efficiency scores, and nonradial DEA models do not consider radial features. This paper develops an Epsilou‐based measure meta‐DEA approach for measuring the efficiencies and technology gaps of different bank types. The results are as the follows: The average efficiency and technology gaps of nonfinancial holding banks are better than those of financial holding banks. The nonfinancial holding banks are more efficient than financial holding banks in investment and other income.

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“…A series of papers by Fukuyama and Weber (, , ) developed a dynamic network (DN) DEA model to measure bank performance. These studies treated nonperforming loans (NPL) as an undesirable jointly produced by‐product of the loan production process.…”

Section: Introductionmentioning

confidence: 99%

Japanese Bank Productivity, 2007–2012: A Dynamic Network Approach

Fukuyama

Weber

2017

Pacific Economic Review

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We estimate a dynamic network (DN) directional output distance function for 100 Japanese banks operating during 2007–2012. Network production occurs in that deposits and other funds raised are produced as intermediate products in stage 1 and those intermediate products are used to generate a portfolio of assets in stage 2. The dynamic technology links production periods via nonperforming loans (NPL) and carryover assets, which take the form of excess reserves. Carryover assets expand the future production possibility set while NPL shrink future production possibilities. We extend previous DN methods to measure the performance of three types of Japanese commercial banks: city banks, regional banks and second regional banks. We test for and find differences in the three bank technologies relative to a common technology. Such differences are likely due to different institutional and regulatory structures. Unlike previous DN studies, we also allow for a non‐uniform abatement factor between previously‐produced NPL and other inputs in stage 1 and between performing loans and NPL in the current period. Measured productivity change is greater when each bank faces their own group technology rather than the pooled technology consisting of all bank types.

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Measuring Japanese bank performance: a dynamic network DEA approach

Cited by 118 publications

References 39 publications

Sustainability in The Banking Industry: A Strategic Multi‐Criterion Analysis

Sustainability in The Banking Industry: A Strategic Multi‐Criterion Analysis

The operating efficiency of financial holding and nonfinancial holding banks—Epsilou‐based measure metafrontier data envelopment analysis model

Japanese Bank Productivity, 2007–2012: A Dynamic Network Approach

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