Banking Essay Example | Topics and Well Written Essays - 500 words

Banking - Essay ExampleAlternatively, Cebenoyan and Strahan (2003) investigated how active management of bank credit risk exposure done the loan sales market affected capital structure, lending, profits, and risk in the USA. Their findings were that banks which improve on their dexterity to manage credit risk may have greater leverage, and subsequently may lend to a greater extent of their assets to risky borrowers.Sathyes hypothesis was that the mean efficiency scores of Indian banks (i.e., publicly, privately or foreign owned) would be different to each other. Using three groups allowed Sathye to compare all three form s of banks that personify in India. And comparison data can determine if differences in efficiency are in accompaniment real, or due to chance. Using financial ratios as the DV, Sathye also use archival data from the modish available publications for the year 1997-98 compiled by the Indian Banks Association (IBA, 1999). She used the non-parametric test while the non-parametric approach is selective information Envelopment Analysis (DEA). The test itself is suitable in that it is recognized to be robust for efficient barrier estimation. And it is a popular tool for the evaluation of the efficiency of a number of producers. DEA can be used with multiple input and multiple output models also.