Performance and risk in the Brazilian banking industry
This paper assesses the technical performance of Brazilian banks while accounting for risk, which is considered as an undesirable outcome of banking. To this end, frontier techniques based on Data Envelopment Analysis and directional distance functions are applied to a sample of 124 banks and data f...
Main Authors: | , , |
---|---|
Format: | Article |
Language: | English |
Published: |
Elsevier
2021-03-01
|
Series: | Heliyon |
Subjects: | |
Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844021006277 |
id |
doaj-7d2f455e10ce49a38ddbd8360009c044 |
---|---|
record_format |
Article |
spelling |
doaj-7d2f455e10ce49a38ddbd8360009c0442021-04-09T10:09:16ZengElsevierHeliyon2405-84402021-03-0173e06524Performance and risk in the Brazilian banking industryFrancisco Javier Sáez-Fernández0Andrés J. Picazo-Tadeo1Ignacio Jiménez-Hernández2Department of Spanish and International Economics, University of Granada, SpainDepartment of Applied Economics II, University of Valencia; and Joint Research Group INTECO, SpainDepartment of Spanish and International Economics, University of Granada, Spain; Corresponding author.This paper assesses the technical performance of Brazilian banks while accounting for risk, which is considered as an undesirable outcome of banking. To this end, frontier techniques based on Data Envelopment Analysis and directional distance functions are applied to a sample of 124 banks and data for the six-year period 2014–19. Our main finding is that the Brazilian banking industry could notably increase its production of conventional outputs without additional input usage and while maintaining the same levels of risk. Besides, investment banks are found to be more efficient than commercial banks mainly because of their superior managerial performance.http://www.sciencedirect.com/science/article/pii/S2405844021006277Brazilian banking industryCommercial and investment banksData Envelopment AnalysisDirectional distance functionsPerformanceRisk |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Francisco Javier Sáez-Fernández Andrés J. Picazo-Tadeo Ignacio Jiménez-Hernández |
spellingShingle |
Francisco Javier Sáez-Fernández Andrés J. Picazo-Tadeo Ignacio Jiménez-Hernández Performance and risk in the Brazilian banking industry Heliyon Brazilian banking industry Commercial and investment banks Data Envelopment Analysis Directional distance functions Performance Risk |
author_facet |
Francisco Javier Sáez-Fernández Andrés J. Picazo-Tadeo Ignacio Jiménez-Hernández |
author_sort |
Francisco Javier Sáez-Fernández |
title |
Performance and risk in the Brazilian banking industry |
title_short |
Performance and risk in the Brazilian banking industry |
title_full |
Performance and risk in the Brazilian banking industry |
title_fullStr |
Performance and risk in the Brazilian banking industry |
title_full_unstemmed |
Performance and risk in the Brazilian banking industry |
title_sort |
performance and risk in the brazilian banking industry |
publisher |
Elsevier |
series |
Heliyon |
issn |
2405-8440 |
publishDate |
2021-03-01 |
description |
This paper assesses the technical performance of Brazilian banks while accounting for risk, which is considered as an undesirable outcome of banking. To this end, frontier techniques based on Data Envelopment Analysis and directional distance functions are applied to a sample of 124 banks and data for the six-year period 2014–19. Our main finding is that the Brazilian banking industry could notably increase its production of conventional outputs without additional input usage and while maintaining the same levels of risk. Besides, investment banks are found to be more efficient than commercial banks mainly because of their superior managerial performance. |
topic |
Brazilian banking industry Commercial and investment banks Data Envelopment Analysis Directional distance functions Performance Risk |
url |
http://www.sciencedirect.com/science/article/pii/S2405844021006277 |
work_keys_str_mv |
AT franciscojaviersaezfernandez performanceandriskinthebrazilianbankingindustry AT andresjpicazotadeo performanceandriskinthebrazilianbankingindustry AT ignaciojimenezhernandez performanceandriskinthebrazilianbankingindustry |
_version_ |
1721532779328438272 |