Classifying Greek banks based on Bank Ranking Index (BRI)
Abstract
Purpose
In the situation of financial crisis, the performance of banking and financial institutions is considered to be important for a country's economy. The purpose of this paper is to develop an index, called the “Bank Ranking Index” (BRI), which classifies banks in a descending order.
Design/methodology/approach
This study proposes the BRI, which is based on a set of quantitative indicators representing, the financial market, the bank's financial identity and its infrastructure and classifies banks in a descending order. Cluster analysis is also used in order to compare the results of the above classification.
Findings
The index is implied in a representative sample of 16 Greek banks. The results indicate that through the proposed approach the banks can improve their efficiency and their overall performance in order to satisfy customers' needs in a more efficient way.
Practical implications
The paper seeks the proposed index as a benchmarking tool, which could be valuable to the bank's management team in order to plan and configure its strategy of development.
Originality/value
Based on banks' characteristics and on financial data the paper introduce a simple index, the BRI, based on which the paper assess the performance of a bank institution.
Keywords
Citation
Mavri, M. (2013), "Classifying Greek banks based on Bank Ranking Index (BRI)", Benchmarking: An International Journal, Vol. 20 No. 5, pp. 607-624. https://doi.org/10.1108/BIJ-09-2011-0069
Publisher
:Emerald Group Publishing Limited
Copyright © 2013, Emerald Group Publishing Limited