A New Resource Allocation Multiple Criteria Decision-Making Method in a Two-Stage Inverse Data Envelopment Analysis Framework for the Sustainable Development of Chinese Commercial Banks

Abstract

The resource allocation of commercial banks is a multiple-criteria decision-making issue with complex internal structure, and traditional inverse data envelopment analysis cannot meet its decision-making needs. A two-stage structure with undesirable outputs is constructed to describe the operations of a Chinese commercial bank, and then a new two-stage inverse data envelopment analysis with undesirable outputs is proposed to address its resource allocation multiple criteria decision-making issue. The new method can be used to calculate the minimum input increment required to achieve the goals of desirable and undesirable output under a certain efficiency, and then a specific resource allocation plan can be obtained to promote the sustainable development of commercial banks. Finally, the new method is applied to the resource allocation of 16 Chinese listed commercial banks in 2013, and the application results fully demonstrate the effectiveness of the new method.