Abstract

Yi-Shan Chen , Chin-Tsai Lin and Jung-Ho Lu

This paper identifies the preferable bank loan quality for reducing non-performing loans (NPL). In combination with the relevant literature and interviews with experts, this study adopts the modified Delphi method and the analytic network process (ANP) to construct an evaluation method and to determine ANP effectiveness. In this study, we apply ANP to construct an evaluation method and introduce four criteria and ten sub-criteria to evaluate six alternative bancassurance alliance models. This paper proves that ANP is an effective tool to provide an accurate solution for the decision maker. The results indicate that executives of banks’ decision maker units establish business loan processes to evaluate the emerging industry credit ability model for banking sector