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Abstract
Strategic planning is an effective tool for long-term planning and utilized by organizations and industries to achieve competitive advantage. Addressing difficulties that the European banking sector struggled during and after the global financial crisis (GFC), the purpose of this paper is to raise important questions about the sustainability of the sector and offers competitive strategy formulations for European policy makers. Empirical findings are accomplished by applying a three phase analysis of SWOT, an integrated model of DEMATEL-ANP (DANP), and fuzzy TOPSIS. Empiricalfindings from the SWOT analysis suggest a total of twelve factors, which are then incorporated to formulate four strategies. The DANP results illustrate that opportunities dimension has the highest impact and strengths has the lowest among others. The fuzzy TOPSIS results demonstrate that "the European Banking Union (EBU) is expected to remove divergence in the Euro area banking sector" is the most important strategy, whilst "the non-risk based leverage ratio (LR) requirement by Basel III" has the weakest importance among the strategy preferences.
Key words: DANP, fuzzy TOPSIS, strategy, competition, European Banking Sector
JEL classification: G20, G21, G41, E44
Sažetak
Strateško planiranje je učinkovit alat za dugoročno planiranje koje primjenjuju organizacije i industrije za postizanje konkurentske prednosti. S obzirom na poteškoće s kojima se europski bankarski sektor suočava za vrijeme i nakon globalne financijske krize (GFC), svrha ovog rada je podići važna pitanja o održivosti sektora i ponuditi formulacije konkurentnih strategija za europske kreatore politike. Empirijski rezultati postižu se primjenom SWOT analize u tri faze, integriranog modela DEMATEL-ANP (DANP) i 'fuzzy' (neizrazitog) TOPSIS-a. Empirijski rezultati SWOT analize ukazuju na ukupno dvanaest čimbenika, koji su potom uključeni u formuliranje četiri strategije. DANP rezultati potvrðuju da faktor prilika ima najveći utjecaj, a snage imaju najniži utjecaj u odnosu na ostala tri faktora. Neizraziti rezultati TOPSIS-a pokazuju da najvažnija strategija jest da "Europska bankovna unija (EBU) ukloni odstupanja u bankarskom sektoru u eurozoni", dok "zahtjev Basel-a III o nerizičnom omjeru financijske poluge (LR)" ima najmanju važnost meðu strategijskim prioritetima.
Key words: DANP, fuzzy (neizraziti) TOPSIS, strategija, konkurencija, Europski bankovni sektor
JEL klasifikacija: G20, G21, G41, E44
(ProQuest: ... denotes formulae omitted.)
1.Introduction
Financial stability and profitability in the European banking industry have increased over the last several years following the latest advances in technology. Financial...