APPLYING THE WARD METHOD IN THE ANALYSIS OF FINANCIAL SITUATION OF COMMERCIAL BANKS
Anna Bieniasz and
Anna Majchrzak
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Anna Bieniasz: Department of Finance and Accounting, Poznan University of Life Sciences
Anna Majchrzak: Poznan University of Life Sciences
Financial Internet Quarterly, 2011, vol. 7, issue 3, 1-12
Abstract:
The article presents the evaluation of the financial situation of commercial banks in Poland. The ratio analysis shows that the biggest variations between analyzed units were in productivity of tangible fixed assets, share of non-performing loans and overall liquidity. The financial indicators constituted the basis for the process of grouping banks into clusters of similar financial standing. The use of Ward method enabled us to differentiate five clusters. The most profitable banks belong to the first cluster, while the most productive ones are from the fourth cluster. The third cluster comprises the banks with the relatively worst financial situation.
Keywords: financial situation; commercial banks; Ward method (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:wsz:fiq000:v:7:y:2011:i:3:id:852
DOI: 10.65748/fiqf-2011-0014
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