Sustainable Development Assessment of Commercial banks based on the Analytic Hierarchy Process

2021 ◽  
Vol 25 (4) ◽  
pp. 121-135
Author(s):  
N. N. Semenova ◽  
I. A. Ivanova ◽  
A. A. Vasil’kina

In the present context, the issues of sustainable development of commercial banks are becoming particularly relevant, since they largely determine the state of the country’s economy as a whole. At the same time, commercial banks operate under the influence of various factors of the internal and external environment, digital transformation and the transition to the fourth industrial revolution, which significantly changes the conditions of their functioning. The time lag in which a credit institution can be in a relatively static, stable state is reduced. In this regard, there is a need to develop a methodology for assessing the sustainable development of commercial banks. This paper aims to develop theoretical provisions and methods for assessing the sustainable development of commercial banks using the analytic hierarchy process. As a result of the research, theoretical approaches to the disclosure of the economic content of the sustainable development of commercial banks, as well as existing A methodological approach to assessing the sustainability of the bank’s development is justified, considering five components: economic, social, environmental, institutional and technological. Within the framework of this approach, criteria for their assessment are proposed for each of the components of the sustainability of the development of commercial banks, a scale of their relative importance is constructed and vectors are determined based on expert assessments. The authors make a conclusion that it is necessary to distinguish four types of stability of the bank’s development: absolute stability, normal stability, unstable state, crisis state. This approach can be used by commercial banks when developing a strategy for the sustainable development of financial and credit organizations. Prospects for further research may be associated with the development of alternative methods for assessing the sustainable development of commercial banks.

2020 ◽  
Vol 67 (6) ◽  
pp. 175-184
Author(s):  
T. Lazorenko ◽  
I. Sholom

The paper deals with the study and investigation of various theoretical approaches to the interpretation of “management” and “sustainable development” concepts, as well as the features of the sustainable development formation concept. It deals with the diversity of views concerning the sustainable development concept in terms of commercial enterprise. The importance of concept implementation is explained by the possibility of balancing the sustainability of all activity components, which provides the growth of socio-economic indicators while preserving the environment and natural resources. The purpose of the investigation is the theoretical substantiation of rationale of the meaning of enterprise sustainable development management concept and the principles of its provision. In the investigation process the following complex methodological approach are applied: theoretical generalization, synergetic, abstract-logical and graphical methods for more synthesized image of the investigated object. The main approaches for determining the enterprise sustainable development are studied and clarified. Emphasis is placed on the expediency of the integrated approach for ensuring the concept of sustainable development management as that one which takes into account the features of all components development and provides an overall assessment of the enterprise sustainability subsystems. The characteristics of the group of stability indicators are defined in this paper. Their definition makes it possible to carry out the detail analysis of activity aspects. Directions for the improvement of the organization conditions due to the implementation of sustainable development management concept are formulated. The importance of the chosen problem is caused by permanent search for effective management mechanisms focusing the management activity on current problems and factors of changing environment negatively affecting the enterprise sustainability. This means that the shifts in enterprise sustainable management provide the opportunity to implement an integrated management policy by required changes resulting in the optimization of business processes, the increase of the level of transparency in operation and the compliance with the principles of sustainable development while preserving the environment.


2010 ◽  
Vol 14 (3) ◽  
pp. 809-819 ◽  
Author(s):  
Svetlana Stevovic ◽  
Zorica Milovanovic ◽  
Aleksandar Milajic

Among its other objectives and principles, sustainable development concept includes finding the optimal technical solutions that will enable exploitation of the resources of energy with minimal environmental damage. The main goal of this paper is to demonstrate methodological approach by using several operational research methods for selecting the optimal solution for complex, multipurpose power-plants construction concept problem with taking the sustainable development aspects into account. These methods are: ELECTRE I-IV, PROMETHEE I-IV, method of analytic hierarchy process (AHP) and linear programming. The aim of this research was to find out highly efficient, but relatively simple methods of defining environmental-friendly and socio-politically acceptable technical solution. The new methodology is developed and tested by case studies of determining the optimal choice for the construction of thermal and hydropower plants in the areas extremely exposed to conflict of economic, environmental and socio-political interest.


2013 ◽  
Vol 807-809 ◽  
pp. 1881-1885
Author(s):  
Chun Mei Zhang ◽  
Min Zhao ◽  
Xue Lv

In this paper, the indexes that are used to assess the influence of road construction on Inner Mongolia grassland have been proposed based on the environment protection perspective. The Analytic hierarchy process was employed to evaluate the importance of different indexes regarding to influence. These indexes would be used to provide information for decision making about road construction in order to achieve the sustainable development of grassland.


Ekonomika APK ◽  
2021 ◽  
Vol 319 (5) ◽  
pp. 46-56
Author(s):  
Olha Kovalenko ◽  
Liudmyla Yashchenko

The purpose of the article is to improve approaches to assessing the effectiveness of innovative activities of the food industry and its individual subsectors to identify prospects for development and problems that can hinder the sustainable development of this area of production and the country as a whole. Research methods. The article uses the methods of theoretical generalizations and comparisons, which made it possible to comprehensively consider and generalize methodological approaches to assessing the effectiveness of innovation in industries. When systematizing the calculated data by the intensity of innovation costs, the methods of statistical classification and grouping were used. To achieve the goal of the study, the methodology for assessing the level of manufacturability of industries has been improved (the OECD methodology is taken as a basis), which made it possible to re-evaluate the effectiveness of innovative activities in sub-sectors of the food industry with an emphasis on the computerization of production. Research results. The article presents a methodical approach to assessing the effectiveness of innovation in the food industry. The study is based on the OECD methodology for assessing the manufacturability of industries, which is to calculate the weighted average cost intensity of R & D. The application of this approach to the food industry has confirmed the too low level of its innovative manufacturability. It was found that due to the lack of relevant statistics on R&D expenditures, it is difficult to assess the effectiveness of innovation in certain sectors of the food industry. It is proposed to solve this problem with the help of capital investment indicators, which are invested in the software of industries and are directly related to the level of computerization of technological processes. The obtained indicators of the intensity of software costs are ranked in descending order and divided into three groups according to the level of computerization, which characterizes the efficiency of innovation, as its level increases profits and profitability in industries. This will contribute to the goals of sustainable development of the country (including goals 2 and 9) and increase the competitiveness of the food industry. Scientific novelty. A methodological approach to assessing the effectiveness of innovative activities of sub-sectors of the food industry in Ukraine is proposed, which will contribute to the formation of a new look at the research methodology of this area of knowledge. Practical significance. Designed for professionals in the field of food industry economics, scientists, teachers, graduate students and students of higher educational institutions. The results of the study can be used by experts to assess the level of manufacturability of industries. Tabl.: 3. Refs.: 30.


Author(s):  
Matthew G. Rhodes

Several decades of research have examined predictions of future memory performance—typically referred to as judgments of learning (JOLs). In this chapter, I first discuss the early history of research on JOLs and their fit within a leading metacognitive framework. A common methodological approach has evolved that permits the researcher to investigate the correspondence between JOLs and memory performance, as well as the degree to which JOLs distinguish between information that is or is not remembered. Factors that influence each aspect of the accuracy of JOLs are noted and considered within theoretical approaches to JOLs. Thus far, research on JOLs had yielded a number of findings and promising theoretical frameworks that will continue to be refined. Future work will benefit by considering how learners combine information to arrive at a judgment, the implications of alternative methods of measuring JOLs, and the potential for JOLs to influence memory.


Author(s):  
Liudmila Lapochkina ◽  
Elena Vetrova

Circumpolar territories and the regions related to the Arctic are those rich with natural resources. They have a high potential for the development of mining and extractive industries. The abundance with resources makes the North increasingly attractive for investments. However, circumpolar territories are characterized by peculiar socio-economic, natural, and climatic conditions which taken together frequently pose a negative impact on people and hinder the exploration opportunities of the Arctic resources. In global, regional, and sub-regional levels, the development of the Arctic is heavily regulated by multilateral international treaties. However, the issues of monitoring and assessment of the sustainable development of the Arctic remain open, which stems from the absence of agreed criteria and indicators for assessing sustainability in the context of national, regional, and scientific approaches. It necessitates the development of a specific methodological approach to the establishment of a system to monitor and assess the sustainable development of the Arctic.


2017 ◽  
Vol 35 (1) ◽  
pp. 63-72 ◽  
Author(s):  
Justyna Hachoł ◽  
Mateusz Hämmerling ◽  
Elżbieta Bondar-Nowakowska

AbstractThe aim of the following study was to compare a few methods of river regulations and indicate the one which fully meets technical regulative standard and concurrently ensures protection of the watercourse ecosystem. According to the sustainable development rules it is of the most importance in every human activity to compromise between developmental and environmental needs of current and future generations. Therefore, both technical criteria related to flood safety and environmental ones were taken into consideration in the analysis. Field study was conducted in vegetation stage between 2008 and 2014 in small and medium lowland watercourses in Lower Silesia. The research comprised of measurements and descriptions of selected technical and environmental elements of a complex system of the watercourse river bed. Basing on obtained results a multicriterial assessment of the effects of the works was conducted. In order to assess the results an Analytic Hierarchy Process (AHP) was used in the study. It facilitated the creation of linear ranking of river beds and indicate the most optimal solution in terms of sustainable development. Such methods have not been applied in solving problems connected with river regulation. That’s why this study aims also at checking the utility of this method in decision making in both planning and regulation works realization. Results of the study indicate high usefulness of AHP method in the decision-making process.


Author(s):  
Elena V. FLENOVA

The aim of the study is to identify the advantages and limitations of the system of standards used in modern Russia as threshold values of indicators of threats to the economic security of the banking system. During the study, we developed the conceptual apparatus of the theory of economic security management, determined the composition of risks of the sustainable development of the banking system and analyzed indicators of threats to its functioning. In accordance with the goal, we presented interpretation of the conceptual structures “economic security of the banking system” and “banking security”. We carried out scientific research using the gnoseological potential of the theory of economic security, the theory of credit and banking, and the theory of risk management. To solve the research problems, we used methods of economic grouping, economic comparison (comparison), abstract-logical method, etc. The use of these methods made it possible to present a typology of risks and threats to the economic security of the banking system, as well as to analyze the methodological approach adopted by the banking segment of the Russian economy to determine threshold values of economic security indicators based on the use of standards. These standards are based on the accounting of indicators of capital adequacy level and indicators of return on capital. We formulated the advantages and disadvantages of this approach taking into account the interests of owners, managers and clients of banks and non-bank credit organizations. It is necessary to develop a methodology for determining the level of risks of the sustainable development of the banking system, taking into account the increase in the level of uncertainty of environmental factors. The obtained conclusions are a starting point for further study of indicators of threats to the economic security of the banking system and justification of their thresholds.


2010 ◽  
Vol 26-28 ◽  
pp. 20-24 ◽  
Author(s):  
Wei Jun Wang ◽  
Chang Huan Tu

Enterprise sustainable development emphasizes coordination of the development of economy, environment and society. The life cycle cost based on the sustainable development controls the engineering cost as well as environmental pollution and damage. The thermal power plant burns large amount of fossil fuels and discharge pollutants which cause serious pollution. Therefore the pollution control and ecological conservation make up important parts of construction and production cost, both of which are key parts of life cycle cost. This paper uses analytic hierarchy process and fuzzy comprehensive evaluation to estimate the life cycle cost and helps the enterprise to make social or temporal comparison and potentiality exploitation and to improve its sustainable development capability.


Sign in / Sign up

Export Citation Format

Share Document