EconPapers    
Economics at your fingertips  
 

An Integrated Fuzzy Cognitive Map Approach in Modelling Factors of Management Quality in Banking Performance

Debmallya Chatterjee and Amol S. Dhaigude

Global Business Review, 2020, vol. 21, issue 3, 763-779

Abstract: Based on the literature review and interviews with experts, this study identifies 11 factors that can effectively capture the management quality dimension of the capital adequacy, asset quality, management quality, earnings, liquidity and sensitivity to market risk (CAMELS) framework in evaluating the performance of banking institutions. It further models these factors using the integrated fuzzy cognitive map (FCM) and Matrice d’Impacts Croisés Multiplication Appliquée a UN Classement (MICMAC) approach. A scenario analysis is then conducted on the proposed model to study the interrelationships between these factors in a dynamic setting. The results suggest that of all the 11 factors identified, the ‘internal control system’ is the most influential factor in determining management soundness, whereas ‘business per employee’ is the most sensitive in which any impact on employee morale could impact business performance. The managerial and practical implications of our study are also discussed.

Keywords: Banking performance; fuzzy cognitive map; simulation; management quality; MICMAC (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0972150918778964 (text/html)

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:sae:globus:v:21:y:2020:i:3:p:763-779

DOI: 10.1177/0972150918778964

Access Statistics for this article

More articles in Global Business Review from International Management Institute
Bibliographic data for series maintained by SAGE Publications ().

 
Page updated 2020-09-19
Handle: RePEc:sae:globus:v:21:y:2020:i:3:p:763-779