Bank Performance Assessment: State of the Art and Perspectives

摘要

The paper presents two issues regarding the assessment of bank performance: the state of the art concerning the main contributions in the field focusing on the advantages and critiques regarding each performance assessment method (the traditional view, the intrinsic valuation of cash flows, the efficiency frontier and the combination of artificial neural networks with efficiency frontier) and acknowledging the high volatility and uncertainty of current financial markets a technique that relies on experts relevant experience and practical knowledge is defined. Considering the fact that non-financial information comprises elements that in the long run have an important impact over the financial information we propose a quantitative-qualitative framework on performance assessment that aims at providing a classification of the best/worst performing banks.