A Multicriteria Approach to Bank Rating

Michael Doumpos () and Constantin Zopounidis ()
Additional contact information
Michael Doumpos: University Campus
Constantin Zopounidis: University Campus

Chapter Chapter 19 in Evaluation and Decision Models with Multiple Criteria, 2015, pp 563-587 from Springer

Abstract: Abstract Bank rating refers to the analysis of a bank’s overall viability, performance and risk exposure. Within the recent financial turmoil, bank rating has become extremely important. Typically, bank rating is performed through empirical procedures that combine financial and qualitative data into an overall performance index. This paper presents a case study on the implementation of a multicriteria approach to bank rating. The proposed methodology is based on the PROMETHEE II method. A rich set of evaluation criteria are used in the analysis, selected in accordance with widely accepted bank rating principals. Special emphasis is put on the sensitivity of the results with regard to the relative importance of the evaluation criteria and the parameters of the PROMETHEE method. Analytic and Monte Carlo simulation techniques are used for this purpose.

Keywords: Decision Support System; Preference Function; Preference Parameter; Risk Grade; PROMETHEE Method (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:ihichp:978-3-662-46816-6_19

Ordering information: This item can be ordered from
http://www.springer.com/9783662468166

DOI: 10.1007/978-3-662-46816-6_19

Access Statistics for this chapter

More chapters in International Handbooks on Information Systems from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().