Evaluating Bank Efficiency with Risk Management by Optimal Common Resource and Three-Parallel Two-Stage Dynamic DEA Model

Yun Tu (), Bin Sheng (), Chien-Heng Tu () and Yung-ho Chiu ()
Additional contact information
Yun Tu: Nankai University
Bin Sheng: Nankai University
Chien-Heng Tu: National Kaohsiung University of Science and Technology
Yung-ho Chiu: Soochow University

Computational Economics, 2025, vol. 65, issue 6, No 16, 3545-3571

Abstract: Abstract Taking risk management as an independent department and comparable factor, we set up three parallel departments (credit, risk management, and investment) in a bank. To resolve the problem of common resource allocation, this study is the first to combine the three parallel departments and the optimal common resource allocation in the banking framework. The empirical results show the following. (1) The efficiency and ranking of banks with risk management are better than that without risk management. (2) Banks that share common resources in an optimal way have higher efficiency than banks that share resources in a non-optimal way.

Keywords: Bank efficiency; Risk management; DEA; Three parallel two stage dynamic DEA; Share common resources (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10614-024-10682-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:compec:v:65:y:2025:i:6:d:10.1007_s10614-024-10682-6

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/10614/PS2

DOI: 10.1007/s10614-024-10682-6

Access Statistics for this article

Computational Economics is currently edited by Hans Amman

More articles in Computational Economics from Springer, Society for Computational Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().