EconPapers    
Economics at your fingertips  
 

Efficiency in BRICS banking under data vagueness: A two-stage fuzzy approach

Peter Wanke, Abul Kalam Azad and Ali Emrouznejad

Global Finance Journal, 2018, vol. 35, issue C, 58-71

Abstract: This study analyzes the efficiency levels of the banking industry in the BRICS countries (Brazil, Russia, India, China, and South Africa) from 2010 to 2014, using an integrated two-stage fuzzy approach. Very often the reliability of data collected from BRICS is questionable. In this research, we first use fuzzy TOPSIS to capture vagueness in the relative efficiency of BRICS banking over time. In the second stage, we adopt fuzzy regressions based on different rule-based systems to enhance the power of significant socioeconomic, regulatory, and demographic variables to predict banking efficiency. These variables are previously identified by using bootstrapped truncated regressions with conditional α-levels, as proposed by Wanke, Barros, and Emrouznejad (2015a). The results reveal that efficiency in the banking industry is positively associated with country gross savings and the GINI index ratio, but negatively associated with relatively high inflation ratios. Fuzzy regressions proved far more accurate than bootstrapped truncated regressions with conditional α-levels. We derive policy implications.

Keywords: Banking performance; BRICS; Fuzzy TOPSIS; Fuzzy regression; Data reliability (search for similar items in EconPapers)
JEL-codes: C6 G21 G34 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1044028316301727
Full text for ScienceDirect subscribers only

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:eee:glofin:v:35:y:2018:i:c:p:58-71

Access Statistics for this article

Global Finance Journal is currently edited by Manuchehr Shahrokhi

More articles in Global Finance Journal from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2018-05-05
Handle: RePEc:eee:glofin:v:35:y:2018:i:c:p:58-71