EconPapers    
Economics at your fingertips  
 

Estimation of bank performance from multiple perspectives: an alternative solution to the deposit dilemma

Dan Li, Yanfeng Li, Yeming Gong and Jiawei Yang
Additional contact information
Dan Li: Southwest Jiaotong University
Yanfeng Li: Southwest Jiaotong University
Yeming Gong: EMLYON Business School

Journal of Productivity Analysis, 2021, vol. 56, issue 2, No 7, 170 pages

Abstract: Abstract In this paper, we propose a flexible two-stage data envelopment analysis (DEA) approach to evaluate the bank performance. Specifically, instead of fixing the role of the deposits in an ex-ante manner, the proposed approach regards deposits as a flexible measure in which it can play different roles for different banks under evaluation. Further, the traditional two-stage approach that regards deposits as an intermediate measure can be a special case of our proposed approach. Additionally, a potential Pareto efficiency improvement for multiple perspectives is identified, which can mitigate discontentment arisen from those fixed-role strategies. The applicability and superiority of the proposed approach is illustrated by assessing the performance of Chinese listed banks over the period from 2014 to 2018. The empirical results demonstrate consistent evidence that the inefficiency of the banking system in China is mainly sourced from the value-added stage. However, different banks may prefer to clarify different roles for the deposits, demonstrating the importance of employing the proposed flexible approach.

Keywords: Bank performance; Data envelopment analysis (DEA); Deposit dilemma; Flexible measure; Two-stage model (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11123-021-00614-z Abstract (text/html)
Access to full text is restricted to subscribers.

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:jproda:v:56:y:2021:i:2:d:10.1007_s11123-021-00614-z

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11123/PS2

DOI: 10.1007/s11123-021-00614-z

Access Statistics for this article

Journal of Productivity Analysis is currently edited by William Greene, Chris O'Donnell and Victor Podinovski

More articles in Journal of Productivity Analysis from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2022-11-10
Handle: RePEc:kap:jproda:v:56:y:2021:i:2:d:10.1007_s11123-021-00614-z