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

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3 Citations (Scopus)


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
Issue number30
Publication statusPublished - 27 Jun 2018


All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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