Skip to main content

A Multicriteria Approach to Assess Banking Performance: The Case of Greece

  • Conference paper
New Trends in Banking Management

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Summary

The Greek banking system in the last years has become a system of thoroughly changes. In this new environment the Greek commercial banks should be adapted and develop new strategy and inclinations, in order to satisfy depositor demands and increase their security and profitability. A multicriteria approach is proposed for evaluating banking performance over multiple criteria. Firstly, a multivariate statistical analysis is applied to select the most important financial ratios, which derive from the study of financial statements of a sample of Greek commercial banks. Then, the multicriteria method PROMETHEE is applied to rank the banks according to their financial performance during the period 1995–1999.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Alexakis, P., Thomadakis S. and Xanthakis, M. (1995), “Banks liberalization and profitability: Evidence from Greek commercial banks”, Journal of International Financial Markets, Institutions and Money, 5/2–3, 181–192.

    Google Scholar 

  • Arshadi, N. and Lawrence, E.C. (1987), “An empirical investigation of new bank performance”, Journal of Banking & Finance, 11, 33–48.

    Article  Google Scholar 

  • Brans, J.P. and Vicke, P. (1985), “A preference ranking organization method”, Management Science, 31, 647–655.

    Article  Google Scholar 

  • Brans, J.P., Vincke, Ph. and Mareschal, B. (1986), “How to rank and how to select projects: The PROMETHEE method,” European Journal of Operational Research, 24, 228–238.

    Article  Google Scholar 

  • DeYung, and Hasan, I. (1998), “The performance of de novo commercial banks: A profit efficiency approach”, Journal of Banking & Finance, 22/5, 565–587.

    Article  Google Scholar 

  • Garganas, N. (1998), “Forecasting the impact from the introduction of the EURO to the financial markets and the banking systems”, Journal of the Hellenic Bank Association, 16/5–8, 19.

    Google Scholar 

  • Gilligan, T., Smirlock, M. and Marshall, W. (1984), “Scale and scope economics in the multi-product banking firm”, Journal of Monetary Economics, 13, 393–405.

    Article  Google Scholar 

  • Gortsos, C. (1998), The Greek Banking System, Hellenic Bank Association, Athens, Greece (in Greek).

    Google Scholar 

  • Hardouvelis, G. (1997), “Financial markets and banks to the Euro zone in the present and in the future of the Greek economy”, A. Kintis (Ed.), vol. A, Economic University of Athens, Gutenberg Publishers, 684–703 (in Greek).

    Google Scholar 

  • Hardy, C.D. and Simigiannis, G.T. (1998), “Competitiveness and effectiveness of the Greek banking system”, Economic Review of the Bank of Greece, 11, 7–30 (in Greek).

    Google Scholar 

  • Hondrogiannis, G., Liolios, S. and Papapetrou, E. (1999), “Assessing competitive conditions in the Greek banking system”, Journal of International Financial Markets, Institutions and Money, 9/4, 377–391.

    Article  Google Scholar 

  • Hunter, W.C., Timme, S.G. and Yang, W.K. (1990), “An examination of cost subadditivity and multiproduct production in large U.S. commercial banks”, Journal of Money, Credit and Banking, 22, 504–525.

    Article  Google Scholar 

  • Jayaratne, J. and Wolken, J. (1999), “How important are small banks to small business lending? New evidence from a survey of small firms”, Journal of Banking & Finance, 23, 427–458.

    Article  Google Scholar 

  • Karafolas, S. and Mantakas, G. (1996), “A note on cost structure and economies of scale in Greek banking”, Journal of Banking & Finance, 20/2, 377–387.

    Article  Google Scholar 

  • Karamouzis, N. (1998), “The transition of the Greek banking system to the Euro zone”, Journal of the Hellenic Bank Association, 13, 33–42 (in Greek).

    Google Scholar 

  • Kloutsiniotis, A. (1996), “The European commercial banks in the framework of qualitative changes to the national banking systems” Economic Review of Commercial Bank of Greece, 8, 4–19 (in Greek).

    Google Scholar 

  • Kosmidou, K. and Spathis, Ch. (2000), “Euro and profitability of Greek banks”, European Research Studies Journal (in press).

    Google Scholar 

  • Lang, G. and Welzel, P. (1996), “Efficiency and technical progress in banking empirical results for a panel of German cooperative banks”, Journal of Banking & Finance, 20/6, 1003–1023.

    Article  Google Scholar 

  • Miller, S. and Noulas, A. (1996), “The technical efficiency of large banks production”, Journal of Banking & Finance, 20/3, 495–509.

    Article  Google Scholar 

  • Miller, S. and Noulas, A. (1997), “Portfolio mix and large-bank profitability in the USA”, Applied Economics, 29, 505–512.

    Article  Google Scholar 

  • Murray, J.D. and White, R.W. (1983), “Economies of scales and economics of scope in multiproduct financial institutions: A study of British Columbia credit unions”, Journal of Finance, 38, 887–902.

    Article  Google Scholar 

  • Noulas, A. (1999), “Profitability and efficiency of Greek banks (1993–1998)”, Journal of the Hellenic Bank Association, 19/20, 53–60 (in Greek).

    Google Scholar 

  • Papaioannou, M. and Ganzonas, E.K. (1997), Financial Innovation Involving the Greek Drachma. IMF Working Paper 97/14 (Washington: International Monetary Fund).

    Google Scholar 

  • Peterson, M. and Rajan, R. (1995), “The effects of credit market competition on lending relationships”, Quarterly Journal of Economics, 60, 407–444.

    Article  Google Scholar 

  • Revell, J. (1980), “Costs and margins in banking: An international survey”, Paris, OECD.

    Google Scholar 

  • Roy, B. (1968), “Classement et choix en présence de points de vue multiples: La méthode ELECTRE”, R.I.R.O, 8, 57–75.

    Google Scholar 

  • Short, B. (1979), “The relation between commercial bank profit rates and banking concentration in Canada, Western Europe and Japan”, Journal of Banking & Finance, 3, 209–219.

    Article  Google Scholar 

  • Spathis, Ch. and Kosmidou K. (1999), “Competitiveness of small & large Greek banks: An investigation”, in: C. Agorastos (ed.), Proceedings of the International Conference “Preparing the Manager of the 21st Century” (vol. I), 205–218.

    Google Scholar 

  • Spathis, Ch., Kosmidou, K. and Doumpos, M. (2002), “Assessing profitability factors in the Greek banking system: A multicriteria methodology”, International Transactions of Operational Research (to appear).

    Google Scholar 

  • Staikouras, C. and Steliaros, M. (1999), “Determinants factors of profitability of the Greek banking system”, Journal of the Hellenic Bank Association, 19/20, 61–66 (in Greek).

    Google Scholar 

  • Tolios, G. (1998), “Banking and insurance groups in the Greek economy. Basic characteristics and development trends”, Economic Review of the Commercial Bank of Greece, 16, 13–25 (in Greek).

    Google Scholar 

  • Vasiliou, D. (1992), “Which are the most profitable banks in Greece, the small, the medium or the big ones?”. Hellenic Bank Association, 73–80 (in Greek).

    Google Scholar 

  • Vasiliou, D. (1993), “Investigation of profitability of Greek bank market”, Journal of the Hellenic Bank Association, 37–38 (in Greek).

    Google Scholar 

  • Vincke, P. (1992), Multicriteria Decision Aid, John Wiley & Sons Ltd, New York.

    Google Scholar 

  • Zopounidis, C., Despotis, D.K. and Stavropoulou, E. (1995), “Multiattribute evaluation of Greek banking performance”, Applied Stochastic Models and Data Analysis, 11/1, 97–107.

    Article  Google Scholar 

  • Zopounidis, C., Doumpos, M. and Georgiou, H. (1997), “Application of a multicriteria methodology in the assessment of banking branches efficiency”, Economic Review of the Commercial Bank of Greece, 10, 4–9 (in Greek).

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2002 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Stathas, O., Kosmidou, K., Doumpos, M., Zopounidis, C. (2002). A Multicriteria Approach to Assess Banking Performance: The Case of Greece. In: Zopounidis, C. (eds) New Trends in Banking Management. Contributions to Management Science. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-57478-8_4

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-57478-8_4

  • Publisher Name: Physica, Heidelberg

  • Print ISBN: 978-3-7908-1488-0

  • Online ISBN: 978-3-642-57478-8

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics