Performance Assessment In Banking Sector Th rough Analitical Hierarchy Process: Th e Case Of Public Banks, Private Commercial Banks And Participation Banks

Abstract

In banking sector, where there is a severe competition, stakeholders of the banks (investors, customers, employees, partners, regulatory institutions etc.) pay great attention to performance of the bank when they choose to put their money. Accordingly, it is important to assess performance of the banks and to determine the criteria that may improve the performance of these institutions. In this study, performance analysis has been made with reference to fi nancial statements of the years between 2009/12-2013/12 belonging to the public, private commercial (fi rst four private commercial banks according size of assets ranking) and participation banks operating in Turkey; as well as some fi nancial ratios from those statements. With the aim of assessing performance of the banks, Analytical Hierarchy Process approach has been used. Multivariate discriminant analysis model and discriminant function created by Altman have also been used for performance assessment. According to the results of the study, it has been concluded that that Vakıfl ar Bankası among the public banks; Akbank among the private commercial banks; and Kuveyt Türk among the participation banks have the highest performance compared to their competitors.

Keywords

• Analytical hierarchy process, performance assessment, public banks, participation banks, commercial banks

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