A multivariate model of integrated branch performance and potential focusing on personal banking

Existing methodologies of bank branch performance analysis are dominated by accounting and financial measures that inherently generate information of a retrospective nature. The outcomes are a possible misleading assessment of a branch's economic viability and misguided planning decisions in reconfiguring a branch. ... This study develops three principal models for an integrated analysis of personal banking performance, based on data collected from branches of a major Australian trading bank. In conclusion, the study delivers a model of overall performance comprised of eight variables; a model of overall potential also comprised of eight variables,- and, a discriminant model comprised of five predictors and two functions with validated coefficients, and a cross-validated correct classification rate. In addition, scales developed for such constructs as customer service quality and managerial competence can be applied independent of regression analysis and discriminant analysis models. It is submitted that the findings of the study can be used in decisions concerning reconfiguring, closing, or opening branches. Furthermore, the study could assist in minimising the gap between current branch performance and branch potential, by focusing attention on the treatment of variables that are controllable by bank management.

Name dc:type.qualificationname

phd

Level dc:type.qualificationlevel

doctoral

Grantor dc:publisher.institution

Victoria University of Technology

Year dc:date.issued

1995

Author dc:creator

• Avkiran, Necmi Kemal

• School of Economics and Finance
• 1402 Applied Economics

Language dc:language

en