Ranking of the Lithuanian banks during the recession of 2008-2009 by the MULTIMOORA method

Collection:
Mokslo publikacijos / Scientific publications
Document Type:
Straipsnis / Article
Language:
Anglų kalba / English
Title:
Ranking of the Lithuanian banks during the recession of 2008-2009 by the MULTIMOORA method
In the Journal:
Annals of management science. 2014, 3, 1, p. 1-28
Summary / Abstract:

ENThe aim of this study is to do a critical analysis, on the basis of different objectives, the banks registered in Lithuania during the recession years 2008-2009. As these banks work in the same macro-economic environment, the objectives are chosen on the basis of the CAMEL classification (‘C’ Capital adequacy, ‘A’ Asset quality, ‘M’ Management quality, ‘E’ Earnings, ‘L’ Liquidity). Traditional Cost-Benefit Analysis is not suitable enough for this. Indeed Cost-Benefit analysis translates all direct and indirect costs and other objectives (benefits) into money terms. On the contrary, Multi-Objective Optimization takes care of the different objectives, with objectives keeping their own units. Different methods exist for the application of Multi-Objective Optimization. In our research, we tested these methods for their robustness. MOORA (Multi-Objective Optimization by Ratio analysis) and MULTIMOORA (MOORA plus a Full Multiplicative Form), showed positive results on these tests. Therefore MULTIMOORA was chosen for the ranking of the Lithuanian Banks during the recession years 2008-2009. Keywords: Multi-objective optimization, Lithuanian banks, bank objectives, robustness, ratio system, Reference point method, Full multiplicative form. [From the publication]

ISSN:
2161-5012; 2161-5004
Related Publications:
Multicriteria evaluation of Lithuanian banks from the perspective of their reliability for clients / Romualdas Ginevičius, Valentinas Podvezko. Journal of business economics and management. 2008, Vol. 9, no. 4, p. 257-267.
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https://www.lituanistika.lt/content/99695
Updated:
2023-03-14 14:16:52
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