Show simple item record

dc.contributor.authorGulati, R.
dc.contributor.authorHassan, M.K.
dc.contributor.authorVincent, Charles
dc.date.accessioned2023-05-16T22:59:53Z
dc.date.accessioned2023-06-09T14:24:57Z
dc.date.available2023-05-16T22:59:53Z
dc.date.available2023-06-09T14:24:57Z
dc.date.issued2023
dc.identifier.citationGulati R, Hassan MK and Vincent C (2023) Developing a new multidimensional index of bank stability and its usage in the design of optimal policy interventions. Computational Economics.en_US
dc.identifier.urihttp://hdl.handle.net/10454/19449
dc.descriptionYesen_US
dc.description.abstractThis study proposes an optimisation-based “benefit-of-the-doubt” (BoD) methodological framework for developing a new multidimensional index of bank stability. The proposed index has the ability to serve as a potent policy tool that overcomes the downsides of accounting- and market-based measures of bank stability. This data-driven approach generates endogenous weights for aggregating bank stability indicators and dimensions. Further, we integrate the BoD framework with a metafrontier approach, which we call a “meta-BoD framework”. The final outcomes of the suggested framework go beyond a scalar measure of bank stability and provide the unique weighting matrix that offers valuable policy-relevant insights about the most precarious areas of stability that require the attention of management and regulators for both micro- and macro-level policy interventions. In addition, it draws insightful information about the instability gaps across heterogenous bank groups. The study presents an illustrative example of the proposed framework to obtain a bank stability index using the dataset of 76 Indian banks operating between 2014 and 2018. The bank stability index is made up of 14 financial ratio indicators covering five dimensions of stability: asset quality, management efficiency, capital adequacy, profitability and liquidity. The findings offer the detailed information required for comprehending the evolution of bank stability and assessing instability gaps across bank groups.en_US
dc.language.isoenen_US
dc.publisherSpringer
dc.rights(c) 2023 SpringerNature. Full-text reproduced in accordance with the publisher's self-archiving policy.en_US
dc.subjectBank stabilityen_US
dc.subjectFinancial soundness indicatorsen_US
dc.subjectBanking crisisen_US
dc.subjectData development analysisen_US
dc.subjectBenefit-of-the-doubt modelen_US
dc.subjectBanksen_US
dc.subjectComposite indexen_US
dc.titleDeveloping a new multidimensional index of bank stability and its usage in the design of optimal policy interventionsen_US
dc.status.refereedYesen_US
dc.date.Accepted2023-05-12
dc.date.application2023-06-05
dc.typeArticleen_US
dc.date.EndofEmbargo2024-06-05
dc.type.versionAccepted manuscripten_US
dc.description.publicnotesThe full-text of this article will be released for public view at the end of the publisher embargo on 5 Jun 2024.en_US
dc.identifier.doihttps://doi.org/10.1007/s10614-023-10401-7
dc.rights.licenseUnspecifieden_US
dc.date.updated2023-05-16T22:59:55Z
refterms.dateFOA2023-06-09T14:26:27Z
dc.openaccess.statusembargoedAccessen_US


Item file(s)

Thumbnail
Name:
CSEMforRIS.pdf
Embargo:
2024-06-05
Size:
2.316Mb
Format:
PDF
Description:
gulati_et_al_2023

This item appears in the following Collection(s)

Show simple item record