Next Article in Journal
Vulnerability Analysis of Intercity Multimode Transportation Networks; A Case Study of the Yangtze River Delta
Previous Article in Journal
Pollution Tradeoffs for Conventional and Natural Gas-Based Marine Fuels
Article Menu

Export Article

Open AccessArticle
Sustainability 2019, 11(8), 2236; https://doi.org/10.3390/su11082236

Business Sustainability Performance Evaluation for Taiwanese Banks—A Hybrid Multiple-Criteria Decision-Making Approach

1
Graduate Institute of International Business, National Taipei University, New Taipei City 237, Taiwan
2
Department of Banking and Finance, Chinese Culture University, Taipei City 111, Taiwan
*
Author to whom correspondence should be addressed.
Received: 23 March 2019 / Revised: 9 April 2019 / Accepted: 11 April 2019 / Published: 13 April 2019
(This article belongs to the Special Issue Enterprise Resource Planning (ERP) and Sustainability)
  |  
PDF [1283 KB, uploaded 13 April 2019]
  |  

Abstract

The Taiwanese government has encouraged bank privatization and the establishment of financial holding companies to improve banking sustainability and consolidate banks, insurance companies, and securities firms. It is important for bank decision makers to set policies that lead to sustainable development. However, the literature remains unclear about the types of banks that achieve greater business sustainability. This paper aims to (1) identify the criteria that affect banks’ business sustainability and (2) determine the most sustainable types of banks. This study uses a hybrid multiple-criteria decision-making approach on eighteen financial criteria for twenty-five Taiwanese listed banks with data from 2012 to 2016. The results show that non-performing loan ratio is the most critical factor. In addition, financial holding companies outperformed non-financial holding companies. Financial holding companies with insurance companies as their largest subsidiaries performed best. Private banks exceeded state-owned banks in sustainability. The results lead to two implications. First, banks should value risk over profitability and diversify financial products. Second, the government should continue to privatize banks. These findings suggest that bank managers implement an enterprise resource planning (ERP) system with a master plan, framework, and guidelines to help them track bank performance indicators to ensure sustainability. View Full-Text
Keywords: banking sustainability; financial holding company; operation performance; hybrid multiple-criteria decision-making; ERP system banking sustainability; financial holding company; operation performance; hybrid multiple-criteria decision-making; ERP system
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Lin, A.J.; Chang, H.-Y. Business Sustainability Performance Evaluation for Taiwanese Banks—A Hybrid Multiple-Criteria Decision-Making Approach. Sustainability 2019, 11, 2236.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top