FINANCIAL PERFORMANCE OF THE ISLAMIC BANKING: AN INTERNATIONAL COMPARISON USING TOPSIS METHOD

Hilal H. Erdogan

FINANCIAL PERFORMANCE OF THE ISLAMIC BANKING: AN INTERNATIONAL COMPARISON USING TOPSIS METHOD

Öz

The aim of this study is to evaluate financial performance of the Islamic banks based on international comparison between 2014 and 2022. The regions and countries which have dependencies with a presence in Islamic finance were included. TOPSIS Method as a multicrieria decision making method was used to rank the regions and countries. Four regions (Southeast Asia, GCC, South Asia, Other MENA) and nine countries (Indonesia, Brunie Darussalam, Kuwait, UAE, Oman, Pakistan, Bangladesh, Jordan, Sudan) were selected based on Islamic Finance Development Report 2022. ROA, ROE, NPM, Gross NPF, net NPF, capital to assets, liquid assets ratio, liquid assets to short-term liabilities and CAR were taken as financial evaluation criteria. The results indicate that while Other MENA is determined as the best performing region for Islamic banking, the country with the best performance is Sudan for the analysis period.

Anahtar Kelimeler

Kaynakça

Akyüz, F., Soba, A. Ş, & Yeşil, T. (2020). Evaluation of financial performance of participation banks with Camels Analysis Method. The Journal of Accounting and Finance, 87, 145-166. Doi: 10.25095/mufad.756250.
Alsu, E., Taşdemir, A., & Kallo, Z. (2018). Evaluation of performances of participation banks: International comparison with Topsis Method. Gaziantep University Journal of Social Sciences, 17(1), 303-316. Doi: 10.21547/jss.342372.
Benli, Y. K., Karaca, S. S., & Bozdan, N. (2018). Measuring of performance of participation banks with Camels analysis in Turkey. Journal of Current Researches on Business and Economics, 8(2), 197-210. Doi: 10.26579/jocrebe-8.2.13.
Chen, S. J., & Hwang, C. L. (1992), Fuzzy multiple attribute decision making methods and applications. Springer-Verlag, Berlin.
Elmas, B., & Yetim, A. (2021). Katılım Bankalarının Finansal Performanslarının TOPSIS Yöntemi İle Uluslararası Boyutta Değerlendirilmesi. International Journal of Islamic Economics and Finance Studies, 3, 230-263. Doi: https://doi.org/10.54427/ijisef.941972.
Elsayed, E. A., Dawood, A. K. S., & Karthikeyan, R. (2017). Evaluating alternatives through the application of Topsis Method with Entropy weight. International Journal of Engineering Trends and Technology, 46(2), 60-66. Doi: 10.14445/22315381/IJETT-V46P211.
Erdoğan, H. H. (2022). A multicriteria decision framework for bank performance evaluation in Turkey. Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 27(1), 98-109.
Erdoğan, H. H. (2023). Entropy-based Waspas approach for financial performance in the Covid-19 era: Evidence from Islamic countries. Financial Internet Quarterly, 19(3), 48-61.

Haseeb, M. (2018). Emerging issues in Islamic banking & finance: Challenges and solutions. Academy of Accounting and Financial Studies Journal, 22(Special Issue), 1-5.
Hwang, C. L., & Yoon, K. (1981).Multiple attributes decision making: Methods and applications. Springer-Verlag, New York.
Khan, A. Q., & Bhatti, A. A. (2018). Islamic banking and finance: A new paradigm in international relations. Journal of Islamic Business and Management, 8(1), 85-101. Doi: 10.26501/jibm/2018.0801-005.
Lai, Y. L., Liu, T. Y., & Hwang, C. L. (1994). TOPSIS for MODM. European Journal of Operational Research, 76(3), 486-500. https://doi.org/10.1016/0377-2217(94)90282-8.
Magableh, G. M. & Mistarihi, M. Z. (2022). Applications of MCDM approach (ANP-TOPSIS) to evaluate supply chain solutions in the context of COVID-19. Heliyon, 8(3), e09062. Doi: 10.1016/j.heliyon.2022.e09062.
Moin, M. S. (2018). Performance of Islamic banking and conventional banking in Pakistan: A comparative study. School of Technology and Society, University of Skövde.
Nayman Hamamcı, H. & Karkacıer, A. (2022). Evaluation of financial performance of participation banks in Turkey and GCC with TOPSIS method. Uluslararası Ekonomi ve Yenilik Dergisi, 8(1), 55-78. Doi: 10.20979/ueyd.1020027.
Olson, D. L. (2004). Comparison of weights in TOPSIS Models. Mathematical and Computer Modelling, 40, 721-727. Doi:10.1016/j.mcm.2004.10.003.
Özkan, T. (2019). Performance measurement of participation banks in Turkey: an application based on analysis of Camels. Turkish Studies Economics, Finance, Politics, 14(3), 903-920. http://dx.doi.org/10.29228/TurkishStudies.23311.
Saleh, A. S., & Zeitun, R. (2006). Islamic banking performance in the Middle East: A Case Study of Jordan. Department of Economics, University of Wollongong.
Yağlı, İ. (2020). Multi-criteria financial performance analysis of Turkish participation banks. Alanya Academic Review Journal, 4(3), 861-873. Doi: 10.29023/alanyaakademik.700013.
Yıldız, S. B. (2020). Performance analysis of Turkey’s participation and conventional indices using Topsis Method. Journal of Islamic Accounting and Business Research, 11(7), 1403-1416. https://doi.org/10.1108/JIABR-08-2018-0123.
Yılmaz, B. Ö., Tozan, H., & Karadayi, M. A. (2020). Multi-criteria decision making (MCDM) applications in military healthcare field. Journal of Health Systems and Policies, 2(2), 149-181.
Yoon, K., & Hwang, C. L. (1995). Multiple Attribute Decision Making: An Introduction. Sage, Thousand Oaks, CA.
Zavadskas, E. K., Turskis, Z., Antucheviciene, J., & Zakarevičius, A. (2012). Optimization of weighted aggregated sum product assessment. Electronics and Electrical Enginering, 122(6), 3-6. Doi: 10.5755/j01.eee.122.6.1810.

Ayrıntılar

Birincil Dil

Türkçe

Konular

Finansal Kurumlar , Katılım Bankacılığı

Bölüm

Araştırma Makalesi

Yazarlar

Hilal H. Erdogan ^*
Türkiye

Yayımlanma Tarihi

18 Ekim 2023

Gönderilme Tarihi

31 Ağustos 2023

Kabul Tarihi

9 Ekim 2023

Yayımlandığı Sayı

Yıl 2023 Cilt: 10 Sayı: 4

IZ

https://izlik.org/JA52AZ52RG

Kaynak Göster

RIS / Bibtex

APA

Erdogan, H. H. (2023). FINANCIAL PERFORMANCE OF THE ISLAMIC BANKING: AN INTERNATIONAL COMPARISON USING TOPSIS METHOD. Avrasya Sosyal ve Ekonomi Araştırmaları Dergisi, 10(4), 628-642. https://izlik.org/JA52AZ52RG