Modelling bank performance: a network DEA approach
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 reserv...
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| Format: | Article |
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Elsevier
2017
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| Online Access: | https://eprints.nottingham.ac.uk/51626/ |
| _version_ | 1848798535970979840 |
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| author | Fukuyama, Hirofumi Matousek, Roman |
| author_facet | Fukuyama, Hirofumi Matousek, Roman |
| author_sort | Fukuyama, Hirofumi |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T20:21:19Z |
| format | Article |
| id | nottingham-51626 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:21:19Z |
| publishDate | 2017 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-516262020-05-04T18:47:52Z https://eprints.nottingham.ac.uk/51626/ Modelling bank performance: a network DEA approach Fukuyama, Hirofumi Matousek, Roman 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. Elsevier 2017-06-01 Article PeerReviewed 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 Data Envelopment Analysis; Bank revenue function; Japanese banks; Non-performing loans; Two stage network DEA https://www.sciencedirect.com/science/article/pii/S0377221716308785?via%3Dihub doi:10.1016/j.ejor.2016.10.044 doi:10.1016/j.ejor.2016.10.044 |
| spellingShingle | Data Envelopment Analysis; Bank revenue function; Japanese banks; Non-performing loans; Two stage network DEA Fukuyama, Hirofumi Matousek, Roman Modelling bank performance: a network DEA approach |
| title | Modelling bank performance: a network DEA approach |
| title_full | Modelling bank performance: a network DEA approach |
| title_fullStr | Modelling bank performance: a network DEA approach |
| title_full_unstemmed | Modelling bank performance: a network DEA approach |
| title_short | Modelling bank performance: a network DEA approach |
| title_sort | modelling bank performance: a network dea approach |
| topic | Data Envelopment Analysis; Bank revenue function; Japanese banks; Non-performing loans; Two stage network DEA |
| url | https://eprints.nottingham.ac.uk/51626/ https://eprints.nottingham.ac.uk/51626/ https://eprints.nottingham.ac.uk/51626/ |