Risk management and dynamic network performance : an illustration using a dual banking system

Date
2018-06
Authors
Kweh, Qian Long
Lu, Wen-Min
Nourani, Mohammad
Ghazali, Mohd Hisyam
Journal Title
Journal ISSN
Volume Title
Publisher
Routledge
Abstract
This study applies dynamic network data envelopment analysis to compare a dual banking system, namely conventional and Islamic banks, with emphasis on risk measures. Non-oriented, variable return-to-scale dynamic network slacks-based measure is used to model the banking performance for the period 2008–2012. Under the consideration of risk measures, the findings highlight that Islamic banks excel in managerial efficiency while conventional banks surpass in profitability efficiency. Furthermore, the regression results find that the number of directors on the risk management committee has a positive impact on banking performance. Meanwhile, the high number of independent directors improves the profitability efficiency but worsens the managerial efficiency. © 2018 Informa UK Limited, trading as Taylor & Francis Group.
Description
This article is not available at CUD collection. The version of scholarly record of this Article is published in Applied Economics (2018), available online at: https://doi.org/10.1080/00036846.2017.1420889.
Keywords
Banking performance, Data envelopment analysis, Dual banking system, Risk management
Citation
Kweh, Q. L., Lu, W.-M., Nourani, M., & Ghazali Mohd Zain, M. H. (2018). Risk management and dynamic network performance: An illustration using a dual banking system. Applied Economics, 50(30), 3285–3299. https://doi.org/10.1080/00036846.2017.1420889