A Qualitative Index of Risk Management of Chinese Banks as an Intermediate Input in Network DEA

DOI: 10.5176/978-981-08-8957-9_QQE-021

Authors: Kent Matthews

Abstract:

The training and practice of risk managers are viewed as second class compared with foreign banks operating in China. This paper evaluates bank performance using a Network DEA approach where an index of risk management practice and an index of risk management organization are used as intermediate inputs in the production process. The two indices are constructed from a survey of risk managers in domestic banks and foreign banks operating in China.

Keywords: Risk management, risk organization, efficiency, Network DEA