Bank financial sustainability evaluation: Data envelopment analysis with random forest and Shapley additive explanations
Author
Abstract
Suggested Citation
DOI: 10.1016/j.ejor.2024.09.030
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Piot-Lepetit, Isabelle & Nzongang, Joseph, 2014. "Financial sustainability and poverty outreach within a network of village banks in Cameroon: A multi-DEA approach," European Journal of Operational Research, Elsevier, vol. 234(1), pages 319-330.
- Matthews, Kent, 2013.
"Risk management and managerial efficiency in Chinese banks: A network DEA framework,"
Omega, Elsevier, vol. 41(2), pages 207-215.
- Matthews, Kent, 2010. "Risk Management and Managerial Efficiency in Chinese Banks: A Network DEA Framework," Cardiff Economics Working Papers E2010/1, Cardiff University, Cardiff Business School, Economics Section, revised Apr 2010.
- Kent Matthews, 2011. "Risk Management and Managerial Efficiency in Chinese Banks: A Network DEA Framework," Working Papers 102011, Hong Kong Institute for Monetary Research.
- Zhou, Xiaoyang & Xu, Zhongwen & Chai, Jian & Yao, Liming & Wang, Shouyang & Lev, Benjamin, 2019. "Efficiency evaluation for banking systems under uncertainty: A multi-period three-stage DEA model," Omega, Elsevier, vol. 85(C), pages 68-82.
- Min Li & Nan Zhu & Kai He & Minghui Li, 2022. "Operational Efficiency Evaluation of Chinese Internet Banks: Two-Stage Network DEA Approach," Sustainability, MDPI, vol. 14(21), pages 1-18, October.
- Ben Bassem, 2008. "Efficiency of Microfinance Institutions in the Mediterranean: An Application of DEA," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 15(2), pages 343-354, September.
- Holod, Dmytro & Lewis, Herbert F., 2011. "Resolving the deposit dilemma: A new DEA bank efficiency model," Journal of Banking & Finance, Elsevier, vol. 35(11), pages 2801-2810, November.
- Isabelle Piot-Lepetit & Joseph Nzongang, 2014. "Financial sustainability and poverty outreach within a network of village banks in Cameroon: A multi DEA approach," Post-Print hal-02639487, HAL.
- Charles, Vincent & Aparicio, Juan & Zhu, Joe, 2019. "The curse of dimensionality of decision-making units: A simple approach to increase the discriminatory power of data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 279(3), pages 929-940.
- Lozano, Sebastián, 2016. "Slacks-based inefficiency approach for general networks with bad outputs: An application to the banking sector," Omega, Elsevier, vol. 60(C), pages 73-84.
- Mamiza Haq & Michael Skully & Shams Pathan, 2010. "Efficiency of Microfinance Institutions: A Data Envelopment Analysis," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 17(1), pages 63-97, March.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Maxime LEBOVICS & Niels HERMES & Marek HUDON, 2016.
"Are Financial And Social Efficiency Mutually Exclusive? A Case Study Of Vietnamese Microfinance Institutions,"
Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(1), pages 55-77, December.
- Maxime Lebovics & Niels Hermes & Marek Hudon, 2014. "Are Financial and Social Efficiency Mutually Exclusive? A Case Study of Vietnamese Microfinance Institutions," Working Papers CEB 14-009, ULB -- Universite Libre de Bruxelles.
- Maxime Lebovics & Niels Hermes & Marek Hudon, 2016. "Are Financial and Social Efficiency Mutually Exclusive? A Case Study of Vietnamese Microfinance Institutions," ULB Institutional Repository 2013/205975, ULB -- Universite Libre de Bruxelles.
- Staub, Roberta B. & da Silva e Souza, Geraldo & Tabak, Benjamin M., 2010.
"Evolution of bank efficiency in Brazil: A DEA approach,"
European Journal of Operational Research, Elsevier, vol. 202(1), pages 204-213, April.
- Roberta B. Staub & Geraldo Souza & Benjamin M. Tabak, 2009. "Evolution of Bank Efficiency in Brazil: A DEA Approach," Working Papers Series 200, Central Bank of Brazil, Research Department.
- Fukuyama, Hirofumi & Matousek, Roman, 2017. "Modelling bank performance: A network DEA approach," European Journal of Operational Research, Elsevier, vol. 259(2), pages 721-732.
- Widiarto, Indra & Emrouznejad, Ali, 2015. "Social and financial efficiency of Islamic microfinance institutions: A Data Envelopment Analysis application," Socio-Economic Planning Sciences, Elsevier, vol. 50(C), pages 1-17.
- Molyneux, Philip & Reghezza, Alessio & Xie, Ru, 2019. "Bank margins and profits in a world of negative rates," Journal of Banking & Finance, Elsevier, vol. 107(C), pages 1-1.
- Niels Hermes & Robert Lensink, 2007.
"The empirics of microfinance: what do we know?,"
Economic Journal, Royal Economic Society, vol. 117(517), pages 1-10, February.
- Niels Hermes & Robert Lensink, 2007. "The empirics of microfinance: what do we know?," ULB Institutional Repository 2013/14198, ULB -- Universite Libre de Bruxelles.
- Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos & Mar Molinero, Cecilio, 2007. "Microfinance institutions and efficiency," Omega, Elsevier, vol. 35(2), pages 131-142, April.
- John Goddard & Phil Molyneux & John O. S. Wilson, 2004. "The profitability of european banks: a cross‐sectional and dynamic panel analysis," Manchester School, University of Manchester, vol. 72(3), pages 363-381, June.
- Lartey, Theophilus & James, Gregory A. & Danso, Albert, 2021. "Interbank funding, bank risk exposure and performance in the UK: A three-stage network DEA approach," International Review of Financial Analysis, Elsevier, vol. 75(C).
- Zhiyong Li & Chen Feng & Ying Tang, 2022. "Bank efficiency and failure prediction: a nonparametric and dynamic model based on data envelopment analysis," Annals of Operations Research, Springer, vol. 315(1), pages 279-315, August.
- Chen, Yao & Cook, Wade D. & Kao, Chiang & Zhu, Joe, 2013. "Network DEA pitfalls: Divisional efficiency and frontier projection under general network structures," European Journal of Operational Research, Elsevier, vol. 226(3), pages 507-515.
- Zhikang Xie & Xinglin Liu & Hina Najam & Qinghua Fu & Jawad Abbas & Ubaldo Comite & Laura Mariana Cismas & Andra Miculescu, 2022. "Achieving Financial Sustainability through Revenue Diversification: A Green Pathway for Financial Institutions in Asia," Sustainability, MDPI, vol. 14(6), pages 1-16, March.
- Avkiran, Necmi Kemal, 2015. "An illustration of dynamic network DEA in commercial banking including robustness tests," Omega, Elsevier, vol. 55(C), pages 141-150.
- B Gutiérrez-Nieto & C Serrano-Cinca & C Mar Molinero, 2009. "Social efficiency in microfinance institutions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(1), pages 104-119, January.
- Cook, Wade D. & Tone, Kaoru & Zhu, Joe, 2014. "Data envelopment analysis: Prior to choosing a model," Omega, Elsevier, vol. 44(C), pages 1-4.
- Fukuyama, Hirofumi & Matousek, Roman, 2018. "Nerlovian revenue inefficiency in a bank production context: Evidence from Shinkin banks," European Journal of Operational Research, Elsevier, vol. 271(1), pages 317-330.
- Olesen, Ole Bent & Petersen, Niels Christian & Podinovski, Victor V., 2015. "Efficiency analysis with ratio measures," European Journal of Operational Research, Elsevier, vol. 245(2), pages 446-462.
- Mohammad Nourani & Nurhafiza Abdul Kader Malim & Md Aslam Mia, 2021. "Revisiting efficiency of microfinance institutions (MFIs): an application of network data envelopment analysis," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 34(1), pages 1146-1169, January.
- George J. Benston, 1965. "Branch Banking And Economies Of Scale," Journal of Finance, American Finance Association, vol. 20(2), pages 312-331, May.
- Ali Ataullah & Tony Cockerill & Hang Le, 2004. "Financial liberalization and bank efficiency: a comparative analysis of India and Pakistan," Applied Economics, Taylor & Francis Journals, vol. 36(17), pages 1915-1924.
- Cook, Wade D. & Zhu, Joe & Bi, Gongbing & Yang, Feng, 2010. "Network DEA: Additive efficiency decomposition," European Journal of Operational Research, Elsevier, vol. 207(2), pages 1122-1129, December.
- Keyur Thaker & Vincent Charles & Abhay Pant & Tatiana Gherman, 2022. "A DEA and random forest regression approach to studying bank efficiency and corporate governance," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 73(6), pages 1258-1277, June.
- Yang, Chyan & Liu, Hsian-Ming, 2012. "Managerial efficiency in Taiwan bank branches: A network DEA," Economic Modelling, Elsevier, vol. 29(2), pages 450-461.
- Xiaohong Liu & Feng Yang & Jie Wu, 2020. "DEA considering technological heterogeneity and intermediate output target setting: the performance analysis of Chinese commercial banks," Annals of Operations Research, Springer, vol. 291(1), pages 605-626, August.
- Aparna Bhatia & Megha Mahendru, 2019. "Financial Efficiency Evaluation of Indian Scheduled Commercial Banks," Jindal Journal of Business Research, , vol. 8(1), pages 51-64, June.
- Wang, Ke & Huang, Wei & Wu, Jie & Liu, Ying-Nan, 2014.
"Efficiency measures of the Chinese commercial banking system using an additive two-stage DEA,"
Omega, Elsevier, vol. 44(C), pages 5-20.
- Ke Wang & Wei Huang & Jie Wu & Ying-Nan Liu, 2014. "Efficiency measures of the Chinese commercial banking system using an additive two-stage DEA," CEEP-BIT Working Papers 68, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
- Sealey, Calvin W, Jr & Lindley, James T, 1977. "Inputs, Outputs, and a Theory of Production and Cost at Depository Financial Institutions," Journal of Finance, American Finance Association, vol. 32(4), pages 1251-1266, September.
- Wanke, Peter & Abul Kalam Azad, Md & Emrouznejad, Ali & Antunes, Jorge, 2019. "A dynamic network DEA model for accounting and financial indicators: A case of efficiency in MENA banking," International Review of Economics & Finance, Elsevier, vol. 61(C), pages 52-68.
- Wijesiri, Mahinda & Viganò, Laura & Meoli, Michele, 2015. "Efficiency of microfinance institutions in Sri Lanka: a two-stage double bootstrap DEA approach," Economic Modelling, Elsevier, vol. 47(C), pages 74-83.
- Yantuan Yu & Jianhuan Huang & Yanmin Shao, 2019. "The Sustainability Performance of Chinese Banks: A New Network Data Envelopment Analysis Approach and Panel Regression," Sustainability, MDPI, vol. 11(6), pages 1-25, March.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Fall, François & Akim, Al-mouksit & Wassongma, Harouna, 2018.
"DEA and SFA research on the efficiency of microfinance institutions: A meta-analysis,"
World Development, Elsevier, vol. 107(C), pages 176-188.
- François-Seck Fall & Al-Mouksit Akim & Harouna Wassongma, 2018. "DEA and SFA research on the efficiency of microfinance institutions: A meta-analysis," Post-Print hal-01794625, HAL.
- Dan Li & Yanfeng Li & Yeming Gong & Jiawei Yang, 2021. "Estimation of bank performance from multiple perspectives: an alternative solution to the deposit dilemma," Journal of Productivity Analysis, Springer, vol. 56(2), pages 151-170, December.
- Li, Lin Yang & Hermes, Niels & Meesters, Aljar, 2019. "Convergence of the performance of microfinance institutions: A decomposition analysis," Economic Modelling, Elsevier, vol. 81(C), pages 308-324.
- Doumpos, Michalis & Zopounidis, Constantin & Gounopoulos, Dimitrios & Platanakis, Emmanouil & Zhang, Wenke, 2023. "Operational research and artificial intelligence methods in banking," European Journal of Operational Research, Elsevier, vol. 306(1), pages 1-16.
- Delaram Najmaei Lonbani & Bram De Rock, 2020. "The performance of microfinance institutions: An analysis of the local and legal constraints," Working Papers CEB 20-011, ULB -- Universite Libre de Bruxelles.
- Wijesiri, Mahinda & Yaron, Jacob & Meoli, Michele, 2017. "Assessing the financial and outreach efficiency of microfinance institutions: Do age and size matter?," Journal of Multinational Financial Management, Elsevier, vol. 40(C), pages 63-76.
- Niels Hermes & Marek Hudon, 2018.
"Determinants Of The Performance Of Microfinance Institutions: A Systematic Review,"
Journal of Economic Surveys, Wiley Blackwell, vol. 32(5), pages 1483-1513, December.
- Niels Hermes & Marek Hudon, 2018. "Determinants of the Performance of Microfinance Institutions: A Systematic Review," Working Papers CEB 18-024, ULB -- Universite Libre de Bruxelles.
- Niels Hermes & Marek Hudon, 2018. "Determinants of the Performance of Microfinance Institutions: A Systematic Review," Working Papers CEB 18-024, ULB -- Universite Libre de Bruxelles.
- Fall, F.S. & Tchakoute Tchuigoua, H. & Vanhems, A. & Simar, L., 2021.
"Gender effect on microfinance social efficiency: A robust nonparametric approach,"
European Journal of Operational Research, Elsevier, vol. 295(2), pages 744-757.
- Fall, François Seck & Tchuigoua, Hubert Tchakoute & Vanhems, Anne & Simar, Léopold, 2020. "Gender effect on microfinance social efficiency: A robust nonparametric approach," LIDAM Discussion Papers ISBA 2020033, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
- Fall, François & Tchuigoua, Hubert & Vanhems, Anne & Simar, Léopold, 2021. "Gender effect on microfinance social efficiency: A robust nonparametric approach," LIDAM Reprints ISBA 2021012, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
- François-Seck Fall & Hubert Tchakoute Tchuigoua & Anne Vanhems & Léopold Simar, 2021. "Gender effect on microfinance social efficiency: A robust nonparametric approach," Post-Print hal-03200582, HAL.
- Lucia Dalla Pellegrina & Damla Diriker & Paolo Landoni & Davide Moro & Mahinda Wijesiri, 2024. "Financial and social sustainability in the European microfinance sector," Small Business Economics, Springer, vol. 63(3), pages 1249-1292, October.
- Hermes, Cornelis & Hudon, M., 2018. "Determinants of the Performance of Microfinance Institutions: A Systematic Review," Research Report 2018008, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Swati Chauhan, 2021. "Social and Financial Efficiency: A Study of Indian Microfinance Institutions," IIM Kozhikode Society & Management Review, , vol. 10(1), pages 31-43, January.
- Wijesiri, Mahinda & Viganò, Laura & Meoli, Michele, 2015. "Efficiency of microfinance institutions in Sri Lanka: a two-stage double bootstrap DEA approach," Economic Modelling, Elsevier, vol. 47(C), pages 74-83.
- Wijesiri, Mahinda & Yaron, Jacob & Meoli, Michele, 2015. "Performance of microfinance institutions in achieving the poverty outreach and financial sustainability: When age and size matter?," MPRA Paper 69821, University Library of Munich, Germany.
- Vaneet Bhatia & Sankarshan Basu & Subrata Kumar Mitra & Pradyumna Dash, 2018. "A review of bank efficiency and productivity," OPSEARCH, Springer;Operational Research Society of India, vol. 55(3), pages 557-600, November.
- Piot-Lepetit, Isabelle & Nzongang, Joseph, 2014. "Financial sustainability and poverty outreach within a network of village banks in Cameroon: A multi-DEA approach," European Journal of Operational Research, Elsevier, vol. 234(1), pages 319-330.
- Kaffash, Sepideh & Azizi, Roza & Huang, Ying & Zhu, Joe, 2020. "A survey of data envelopment analysis applications in the insurance industry 1993–2018," European Journal of Operational Research, Elsevier, vol. 284(3), pages 801-813.
- Maxime LEBOVICS & Niels HERMES & Marek HUDON, 2016.
"Are Financial And Social Efficiency Mutually Exclusive? A Case Study Of Vietnamese Microfinance Institutions,"
Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(1), pages 55-77, December.
- Maxime Lebovics & Niels Hermes & Marek Hudon, 2014. "Are Financial and Social Efficiency Mutually Exclusive? A Case Study of Vietnamese Microfinance Institutions," Working Papers CEB 14-009, ULB -- Universite Libre de Bruxelles.
- Maxime Lebovics & Niels Hermes & Marek Hudon, 2016. "Are Financial and Social Efficiency Mutually Exclusive? A Case Study of Vietnamese Microfinance Institutions," ULB Institutional Repository 2013/205975, ULB -- Universite Libre de Bruxelles.
- Simon Cornée & Gervais Thenet, 2016.
"Efficience des institutions de microfinance en Bolivie et au Pérou:une approche data envelopment analysis en deux étapes,"
Revue Finance Contrôle Stratégie, revues.org, vol. 19(1), pages 65-91, March.
- Simon Cornée & Gervais Thenet, 2015. "Efficience des institutions de microfinance en Bolivie et au Pérou : une approche Data Envelopment Analysis en deux étapes," Economics Working Paper Archive (University of Rennes & University of Caen) 201516, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
- Simon Cornée & Gervais Thenet, 2015. "Efficience des institutions de microfinance en Bolivie et au Pérou :une approche Data Envelopment Analysis en deux étapes," Working Papers CEB 15-040, ULB -- Universite Libre de Bruxelles.
- Simon Cornée & Gervais Thenet, 2016. "Efficience des institutions de microfinance en Bolivie et au Pérou : une approche data envelopment analysis en deux étapes," Post-Print halshs-01306946, HAL.
- Fukuyama, Hirofumi & Matousek, Roman & Tzeremes, Nickolaos G., 2020. "A Nerlovian cost inefficiency two-stage DEA model for modeling banks’ production process: Evidence from the Turkish banking system," Omega, Elsevier, vol. 95(C).
- Wijesiri, Mahinda, 2016.
"Weathering the storm: ownership structure and performance of microfinance institutions in the wake of the global financial crisis,"
Economic Modelling, Elsevier, vol. 57(C), pages 238-247.
- Mahinda Wijesiri, 2016. "Weathering the storm: Ownership structure and performance of microfinance institutions in the wake of the global financial crisis," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2016-002, Indira Gandhi Institute of Development Research, Mumbai, India.
More about this item
Keywords
Data envelopment analysis; Machine learning; Random forest; SHAP; Performance evaluation;All these keywords.
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:321:y:2025:i:2:p:614-630. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.