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A multicriteria decision framework for measuring banks' soundness around the world

Zopounidis Konstantinos, Gaganis, Chrysovalantis, Pasiouras, Fotios

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URIhttp://purl.tuc.gr/dl/dias/7322FE27-24D6-455E-B433-E5AB28D46475-
Identifierhttps://doi.org/10.1002/mcda.405-
Languageen-
Extent9 pagesen
TitleA multicriteria decision framework for measuring banks' soundness around the world en
CreatorZopounidis Konstantinosen
CreatorΖοπουνιδης Κωνσταντινοςel
CreatorGaganis, Chrysovalantisen
CreatorPasiouras, Fotiosen
PublisherJohn Wiley and Sonsen
Content SummaryIn this paper, we use a sample of 894 banks from 79 countries to develop a multicriteria decision aid model, for the classification of banks into three groups on the basis of their soundness. The model is developed with the UTilités Additives DIScriminantes (UTADIS) method, through a 10-fold cross-validation procedure using six financial and four non-financial variables. The ratings of Fitch form the basis for assigning banks into the three groups. The results indicate that the asset quality (as measured by loan loss provisions), capitalization, and the market where banks operate are the most important criteria (in terms of weights) in classifying the banks. Profitability and efficiency in expenses management are also important attributes, whereas size and listing in a stock exchange are the least important ones. UTADIS achieves higher classification accuracies than discriminant analysis and ordinary logistic regression which are used for benchmarking purposes.en
Type of ItemPeer-Reviewed Journal Publicationen
Type of ItemΔημοσίευση σε Περιοδικό με Κριτέςel
Licensehttp://creativecommons.org/licenses/by/4.0/en
Date of Item2015-10-28-
Date of Publication2006-
SubjectCapability, Financial (Financial literacy)en
SubjectFinancial capability (Financial literacy)en
SubjectLiteracy, Financialen
Subjectfinancial literacyen
Subjectcapability financial financial literacyen
Subjectfinancial capability financial literacyen
Subjectliteracy financialen
Bibliographic CitationCh. Gaganis, F. Pasiouras ,C. Zopounidis ," A Multicriteria decision framework for measuring banks’ soundness around the world," J. of Multi- Criteria Dec.Anal vol 14, no. 1-3, pp.103 - 111,Jun. 2006.doi:10.1002/mcda.405en

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