Risk management and dynamic network performance

an illustration using a dual banking system

Qian Long Kweh, Wen Min Lu, Mohammad Nourani, Mohd Hisyam Ghazali @ Mohd Zain

Research output: Contribution to journalArticle

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.

Original languageEnglish
Pages (from-to)3285-3299
Number of pages15
JournalApplied Economics
Volume50
Issue number30
DOIs
Publication statusPublished - 27 Jun 2018

Fingerprint

Banking system
Risk management
Banking
Network dynamics
Profitability
Managerial efficiency
Islamic financial institutions
Measure of risk
Independent directors
Variable returns to scale
Excel
Slacks-based measure
Data envelopment analysis
Risk measures

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

Kweh, Qian Long ; Lu, Wen Min ; Nourani, Mohammad ; Ghazali @ Mohd Zain, Mohd Hisyam. / Risk management and dynamic network performance : an illustration using a dual banking system. In: Applied Economics. 2018 ; Vol. 50, No. 30. pp. 3285-3299.
@article{2cf91897a5354ef4b96e6158df34a8f7,
title = "Risk management and dynamic network performance: an illustration using a dual banking system",
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.",
author = "Kweh, {Qian Long} and Lu, {Wen Min} and Mohammad Nourani and {Ghazali @ Mohd Zain}, {Mohd Hisyam}",
year = "2018",
month = "6",
day = "27",
doi = "10.1080/00036846.2017.1420889",
language = "English",
volume = "50",
pages = "3285--3299",
journal = "Applied Economics",
issn = "0003-6846",
publisher = "Routledge",
number = "30",

}

Risk management and dynamic network performance : an illustration using a dual banking system. / Kweh, Qian Long; Lu, Wen Min; Nourani, Mohammad; Ghazali @ Mohd Zain, Mohd Hisyam.

In: Applied Economics, Vol. 50, No. 30, 27.06.2018, p. 3285-3299.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Risk management and dynamic network performance

T2 - an illustration using a dual banking system

AU - Kweh, Qian Long

AU - Lu, Wen Min

AU - Nourani, Mohammad

AU - Ghazali @ Mohd Zain, Mohd Hisyam

PY - 2018/6/27

Y1 - 2018/6/27

N2 - 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.

AB - 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.

UR - http://www.scopus.com/inward/record.url?scp=85041003982&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85041003982&partnerID=8YFLogxK

U2 - 10.1080/00036846.2017.1420889

DO - 10.1080/00036846.2017.1420889

M3 - Article

VL - 50

SP - 3285

EP - 3299

JO - Applied Economics

JF - Applied Economics

SN - 0003-6846

IS - 30

ER -