Performance Evaluation Of Turkish Banks Using Analytical Hierarchy Process And Topsis Methods (original) (raw)
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Fuzzy performance evaluation in Turkish Banking Sector using Analytic Hierarchy Process and TOPSIS
Expert Systems With Applications, 2009
The performance evaluation of banks has important results for creditors, investors and stakeholders since it determines banks' capabilities to compete in the sector and has a critical importance for the development of the sector. The aim of this study is to propose a fuzzy multi-criteria decision model to evaluate the performances of banks.The largest five commercial banks of Turkish Banking Sector are examined and these banks are evaluated in terms of several financial and non-financial indicators. Fuzzy Analytic Hierarchy Process (FAHP) and Technique for Order Performance by Similarity to Ideal Solution (TOPSIS) methods are integrated in the proposed model. After the weights for a number of criteria are determined based on the opinions of experts using the FAHP method, these weights are input to the TOPSIS method to rank the banks. The results show that not only financial performance but also non-financial performance should be taken into account in a competitive environment. Crown
International Journal of Process Management and Benchmarking, 2021
Measuring the performance of the bank and determining the key factor relating to its efficiency and effectiveness in gaining popularity in the recent time period. Efficient operation system is crucially important for banks. In such facet ranking of the bank is becoming essential. Ranking will help the bank in improving their performance with respect to self and other. The present paper seeks to measure the performance and propose a method to rank Indian public sector banks by combining some multiple criteria decision-making tools like AHP and TOPSIS. To know the degree of relation between the different set of variables correlation test is applied. For the study purposes, all public sector banks are considered. Results interpret an alternative ranking of the banks. Finally, this paper provides better vision to focus on the area of improvement in comparison to other banks.
Performance Evaluation and Ranking of Turkish Private Banks Using AHP and TOPSIS
2015
Measuring performance and determining the key factors of performance have been an important research topic in different sector in recent years. The main goal of this study is to evaluate the performance ranks of the private banks in Turkey due to the fact that performances of private banks are important at the stage of economic growth. In this research, the private banks in Turkey ranked by TOPSIS method using weights of capital ratios obtained from AHP. The performance ranks of private banks sorted according to their TOPSIS scores for the period 2009-2013. In this study, capital ratios of Turkish private banks are placed in a hierarchical decision structure to establish pairwise comparisons between the model parameters which are based on the subjective judgment of a group of experts. , In order to find the performance order of the private banks in Turkey according to capital ratios, calculated criteria and sub-criteria weights for each banks by using AHP to use in TOPSIS method. Pe...
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2016
Because of the Increasing competition between enterprises in the current competitive market, the importance of continuous performance evaluation in the marketplace has increased. It has become increasingly important for banks, because as a key component of the financial system, banks allocate funds from savers to borrowers in an efficient manner to support economic activities. Along with the increase of the number of private banks in Iran in recent years, competition among banks for banking activities has increased. On the other hand the presence of the private banks in the stock exchange market led to an increased sensitivity to the banks' financial performance by their shareholders. In this study, first we identified the criteria and their coefficients used for financial performance evaluation of private banks using fuzzy AHP method. After that, we evaluated financial performance of Iran private banks and ranked them using the information of the financial statements at the end of Solar Hijri year 1393 (March 2015) and TOPSIS method.
Multi-Criteria Decision-Making Model Evaluating the Performance of Vietnamese Commercial Banks
International Journal of Financial Research, 2017
The commercial banks (CBs) performance evaluating has been a necessary problem in currently integration trend and usually implemented by a committee of experts under criteria selected. Therefore, it is considered as a Multi - Criteria Decision - Making model (MCDM). Nowadays, there have been many researches proposing various standards and models to evaluate and rank CBs. But in Vietnam, the number of studies related to the Vietnamese banking evaluation model have still been limited. As a result, this study develops a multi-criteria decision model integrating Fuzzy Analytical Hierarchy Process (FAHP) and Fuzzy the Technique for Order of Preference by Similarity to Ideal Solution (FTOPSIS). The proposed model has evaluated and ranked five Vietnamese commercial banks including CTG, VCB, BIDV, TCB and MB. The paper revealed their ranks. Besides, the results of the research show that the Analytical Hierarchy Process (AHP) model is suitable for applying it to the process evaluating bank p...
There is no denial of the fact that preparing employee appraisal is a critical managerial attempt in any organization associated with numerous opinion and enormous criteria which confines the implication of any single objective model. Therefore, multi-criteria decision making approach has been implemented for this framework. Although, the dimensions of this model were principally designed with Balance Score Card model, AHP (Analytical hierarchical process), conventional TOPSIS (Technique for Order Preference by Similarity to an Ideal Solution method), traditional Fuzzy AHP or the combination of two of them, there were loads of flaws that resulted in controversy of that analysis. They came short of defining a set of quantitative indicators while they lacked in scoring system or sometimes they showed inconsistencies or lack of mathematical precision and so on. However, in order to ensure the drawbacks of these models to be overcome, in this article the integration of modified Fuzzy AHP and Fuzzy TOPSIS has been used to establish a new approach for preparing bank employee appraisal. This methodology will bring the vital facets of the model to shorten and helps bridge the gap among staffs for accomplishing more ideal level of performance.
The aim of this study is to propose a fuzzy multi-criteria decision model to evaluate the performance of banks. Each performance evaluation model is a tool which encloses diverse information for decision makers after being performed. This specific application of these models contributes in responding the questions existing in decision makers’ minds. In this paper, the affecting criteria in two financial and non-financial levels were selected and investigated after library studies and using experts’ viewpoints. Standard questionnaires were designed and distributed among state-owned banks, partially private and private banks’ experts and high rank managers. 10 branches of each above mentioned banks were selected as a case study. The data was extracted from questionnaires and the variables were weighted using fuzzy AHP and ultimately the banks were ranked applying TOPSIS technique. Based on the findings, profitability in financial level and service quality in non-financial level have gained the greatest importance according to experts’ view points. In total ranking of management performance, private banks was placed at the first rank and partially private and private banks were ranked as the second and third, respectively. The results implied that having acceptable financial performance does not lead to having satisfactory non-financial performance spontaneously and in today’s competitive environment, managers need to observe both financial and non-financial performance in order to succeed.
MULTI-CRITERIA ANALYSIS OF BANKS'PERFORMANCES
sobiad.org
Financial performance evaluation of firms is one of the multi-criteria decision making (MCDM) problem. The aim of this study is to evaluate and rank banking firms which are traded in ISE with respect to overall financial performances. One of the promising methods VIKOR (Vise Kriterijumska Optimizacija I Kompromisno Resenje) which is a compromise ranking method used as a multi-criteria decision making (MCDM) techniques in this study. By the application of VIKOR banks are ranked with respect to their overall performances.
Performance Evaluation and Ranking of Turkish Banking Sector
Procedia Economics and Finance, 2015
Measuring performance and determining the key factors of performance have been an important research topic in different sector in recent years. The main goal of this study is to evaluate the performance ranks of the private banks in Turkey due to the fact that performances of private banks are important at the stage of economic growth. In this research, the private banks in Turkey ranked by TOPSIS method using weights of capital ratios obtained from AHP. The performance ranks of private banks sorted according to their TOPSIS scores for the period 2009-2013. In this study, capital ratios of Turkish private banks are placed in a hierarchical decision structure to establish pairwise comparisons between the model parameters which are based on the subjective judgment of a group of experts. , In order to find the performance order of the private banks in Turkey according to capital ratios, calculated criteria and sub-criteria weights for each banks by using AHP to use in TOPSIS method. Performance scores of private the banks obtained by TOPSIS method related with banks' capital ratios of AHP weights. Consequently, the performances and also the sector share of the private banks weren't changed for analyzed period.
Fuzzy Approach in Ranking of Banks according to Financial Performances
Mathematical Problems in Engineering, 2016
Evaluating bank performance on a yearly basis and making comparison among banks in certain time intervals provide an insight into general financial state of banks and their relative position with respect to the environment (creditors, investors, and stakeholders). The aim of this study is to propose a new fuzzy multicriteria model to evaluate banks respecting relative importance of financial performances and their values. The relative importance of each pair of financial performance groups is assessed linguistic expressions which are modeled by triangular fuzzy numbers. Fuzzy Analytic Hierarchical Process (FAHP) is applied to determine relative weights of the financial performances. In order to rank the treated banks, new model based on Fuzzy Technique for Order Performance by Similarity to Ideal Solution (FTOPSIS) is deployed. The proposed model is illustrated by an example giving real life data from 12 banks having 80% share of the Serbian market. In order to verify the proposed F...