IDEAS home Printed from https://ideas.repec.org/h/spr/lnopch/978-3-031-98177-7_18.html
   My bibliography  Save this book chapter

Application of Data Envelopment Analysis on Bank Asset and Liability Management

Author

Listed:
  • Jacob Muvingi

    (University of Kurdistan Hewler)

Abstract

Data envelopment analysis (DEA) is a method for identifying the best practices among peer decision-making units (DMUs). Bank profitability is a function of a bank’s asset and liability management. The sensitivity of a bank’s assets and liabilities to the movement of interest rates is a key aspect of a bank asset and liability management. The difference between rate-sensitive assets (RSA) and liabilities (RSL) represents a bank’s income gap (IG). The nature of a bank’s IG affects the bank’s interest-bearing income. Banks generally face a decision-making challenge associated with choosing the optimum RSL, RSA, and IG structure. The current study proposed a IG efficiency analysis for a hypothetical banking sector based on three scenarios of a bank’s IG; negative IG, positive IG, and a mixture of positive and negative IG. The semi-oriented radial measure model was used in the study to handle negative IG values. Targets for the outputs in each scenario were provided. Overally it was discovered that of the three scenarios, the negative IG scenario yield a higher number of efficient banks.

Suggested Citation

  • Jacob Muvingi, 2025. "Application of Data Envelopment Analysis on Bank Asset and Liability Management," Lecture Notes in Operations Research,, Springer.
    • Handle: RePEc:spr:lnopch:978-3-031-98177-7_18
    DOI: 10.1007/978-3-031-98177-7_18
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    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:spr:lnopch:978-3-031-98177-7_18. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.