Multivariate Competitive Position Analysis in Banking Sector: Polish Banks Versus Peer Group Perspective
Theory of Management 8, (ed.) Stefan Hittmar, Faculty of Management Science and Informatics, University of Zilina, Forthcoming
9 Pages Posted: 13 Oct 2015
Date Written: October 8, 2015
Banks perform various roles in the economy and are critical to both the financial system and the real economy. Situation of banks has changed when compare financial ratios before and after financial crisis. The paper presents the possibility of using euclidean distance from the Positive Development Pattern (PDP) to identify those Polish banks which has the highest competitive position comparing to domestic banking sector and peer group of main competitors. As a result there was created synthetic ratio with range from 0 to 1 for each of bank. Sorted from highest to lowest value of SMD ratio became a ranking of competitive position of banks. The purpose of the paper is to present possibility of usage of multidimensional analysis to evaluate the competitive position of bank versus peer group in 2007 and 2013. Author presents SMD (Systematic Measure of Development) ratio as a tool that solves the problem of low level of utility of one-dimensional analysis.
Keywords: competitive, advantage, taxonomy, bank, multidimensional analysis
JEL Classification: M20, O1, E44
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