Financial management is crucial for bank as the banking sector contributes to the development of the country. Financial management is a multi-criteria decision making (MCDM) problem because the banks need to consider multiple goals to achieve an optimal decision. Therefore, Goal Programming (GP) model is utilized in bank financial management owing to its robustness in performing optimization in MCDM problems. Based on the past studies, comprehensive studies have not been done on comparison of financial management among the banks with GP model. Therefore, this study aims to investigate, optimize and compare the financial management of listed banks in Malaysia with GP model for benchmarking purpose. Eight different goals of bank financial management, namely total assets, total liabilities, equity, profit, earnings, optimum management item, credit risk and liquidity risk are examined in this study. The results of this study show that GP model is able to generate the optimal solution and determine the goal achievement for each bank. All banks are able to achieve the goals on total assets, equity and optimum management item except total liabilities and credit risk. This study is significant because it is a comprehensive study on the financial management of listed banks in Malaysia using GP model. In addition, this study provides recommendation for further improvement based on the optimal solution of GP model.
Volume 11 | 12-Special Issue
Pages: 39-46