Un Indicador compuesto basado en ratios para la banca en España bajo un esquema no compensatorio
Year: 2024
Type: article
Abstract: This paper proposes the construction of a composite indicator based on ratios using a non-compensatory methodology to evaluate the performance of banking institutions. Starting with a selection of nineteen indicators is considered that cover five dimensions—loan quali-ty, capital quality, operating performance, profitability and liquidity—this indicator is designed to indirectly measure the instability of financial institutions. The use of a non-compensatory methodology for the aggregation of individual indicators eliminates the possibility that weaknesses in certain areas are compensated by strengths in others. This proposal is illustrated with data from the main financial entities that operated in the Spanish banking market during 2020, three of which subsequently ceased to exist due to mergers or acquisi-tions. The results show that the entities that disappeared were located in the lower ranks of the classification provided by the indicator.
Source: Studies of Applied Economics
DOI: 10.25115/cbvbxq93
Institution: Universidad Pablo de Olavide
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4404144013