The paper introduces a two-stage network Nerlovian profit inefficiency estimator, modelling bank’ “black box” production processes. The unique features of the model include the modelling of a risk factor measured by period non-performing loans (NPLs). Specifically, NPLs enter in the second stage of banks production processes, alongside a human capital factor. The model is applied to Japanese local Shinkin banks over the period 2008–2015. The findings highlight the importance of incorporating previous period NPLs and human capital factors when modelling bank production processes. Moreover, we provide evidence that previous period NPLs act as an endogenous risk factor having a negative effect on bank profit efficiency levels. The empirical findings suggest that the human capital factor has a positive effect on bank profit efficiency levels. Finally, both the effect of NPLs and human capital factor has an asymmetric effect on bank performance levels.

本文介绍了一个两阶段网络 Nerlovian 利润无效率估计器，对银行的“黑匣子”生产过程进行建模。该模型的独特之处包括对由期间不良贷款 (NPL) 衡量的风险因素进行建模。具体而言，不良贷款与人力资本因素一起进入银行生产过程的第二阶段。该模型在 2008-2015 年期间应用于日本当地的 Shinkin 银行。研究结果强调了在模拟银行生产流程时纳入前期不良贷款和人力资本因素的重要性。此外，我们提供的证据表明，前期不良贷款是一种内生风险因素，对银行利润效率水平产生负面影响。实证结果表明，人力资本因素对银行利润效率水平有正向影响。最后，