Το work with title Assessing performance factors in the UK banking sector: a multicriteria methodology by Michael Doumpos, Zopounidis Konstantinos, Pasiouras Fotios, Kosmidou, Kyriaki is licensed under Creative Commons Attribution 4.0 International
Bibliographic Citation
K. Kosmidou, F. Pasiouras, M. Doumpos and C. Zopounidis, "Assessing performance factors in the UK banking sector: a multicriteria methodology," Cent. Europ. J. Operat. Res., vol. 14, no. 1, pp. 25-44, Feb. 2006. doi:10.1007/s10100-006-0158-5
https://doi.org/10.1007/s10100-006-0158-5
Further consolidation takes place not only among UK banks but also across borders, since some banks see size as a key factor in remaining competitive in international markets. Therefore, it is interesting to investigate the effectiveness and performance of UK banks. Based on their assets, banks are distinguished into small and large ones and a classification of UK banks in a multivariate environment for the period 1998–2002 takes place. The PAIRCLAS multicriteria methodology is employed to investigate the performance of UK small and large banks over multiple criteria, such as asset quality, capital adequacy, liquidity and efficiency/profitability. A comparison with discriminant analysis (DA) and logistic regression (LR) facilitates the investigation of the relative performance of PAIRCLAS against them. The results of the study determine the key factors that specify the classification of a bank as small or large and provide us with the responsible banking decision makers for future readjustments.