Investigating Performances of Commercial Banks in the UK by Using Grey Relation Analysis

Abstract

This study employs Grey Relational Analysis to assess the financial performance of commercial banks in the UK banking system. The main aim of the study is to identify influential indicators that have an impact on the banks’ performance. Identifying influential indicators helps banks determine strategies, capitalize on strengths, address weaknesses, and assure stakeholders of their resilience and profitability in dynamic markets. Using data from 2020 to 2022, five categories—profitability, interest ratio, liquidity and funds, asset quality, and capital adequacy—were analysed. This period was chosen to reveal the impact of Covid-19 on the performance of banks in the UK. Barclays plc consistently emerges as a top performer, showcasing robust financial management. Nationwide Building Society maintains stable performance with strengths in asset quality and funding. Lloyds Banking Group demonstrates stability with good profitability and capital adequacy. Santander UK plc exhibits fluctuating performance. NatWest Group plc shows moderate fluctuations, while HSBC Holding plc and Standard Chartered plc face specific challenges. According to the results of this study, Grey Relational Analysis (GRA) is a useful tool that aids strategic decision-making and risk management. It benefits the banking sector by supporting profitability, stability, and performance. Effective interest rate management is a significant factor in maintaining stability during market fluctuations. High asset quality strengthens bank performance, while efficient liquidity management is crucial for the sustained success of banks.

Keywords

• Commercial Banks
• Performance Evaluation
• Grey Relational Analysis
• Financial Indicators
• UK Banking System

Birleşik Krallık'taki Ticari Bankaların Performanslarının Gri İlişki Analizi Kullanarak İncelenmesi

Abstract

Bu çalışma, Birleşik Krallık bankacılık sistemindeki ticari bankaların mali performansını Gri İlişki Analizi'ni kullanarak değerlendirmektedir. Çalışmanın temel amacı, bankaların performansını etkileyen önemli göstergeleri belirlemektir. Bu göstergelerin belirlenmesi, bankaların stratejilerini belirlemesine, güçlü yönlerinden faydalanmasına, zayıflıklarını ele almasına, dinamik piyasalarda dayanıklılıklarını ve karlılıklarını paydaşlar için güvence altına almalarına yardımcı olur. 2020 ile 2022 yılları arasındaki veriler kullanılarak, karlılık, faiz oranı, likidite ve fonlar, varlık kalitesi ve sermaye yeterliliği olmak üzere beş kategori analiz edilmiştirBu dönem, İngiltere'deki bankaların performansı üzerinde Covid-19'un etkisini ortaya koymak amacıyla seçildi. Barclays plc, güçlü finansal yönetim sergileyen ve en iyi performans gösteren bankalar arasında ön plana çıkmaktadır. Nationwide Building Society, varlık kalitesi ve fonlama alanında istikrarlı bir performans sergilemektedir. Lloyds Banking Group, iyi karlılık ve sermaye yeterliliği ile istikrar gösterir. Santander UK plc dalgalı bir performansa sahiptir. NatWest Group plc orta düzeyde dalgalanmalar gösterirken, HSBC Holding plc ve Standard Chartered plc belirli zorluklarla karşı karşıyadır. Bu çalışmanın sonucuna göre, Gri İlişki Analizi (GRA), stratejik kararlar ve risk yönetimine yardımcı olan kullanışlı bir araçtır. Karlılık, istikrarı ve performansı destekleyerek bankacılık sektörüne fayda sağlamaktadır. Etkin faiz oranı yönetimi, piyasa dalgalanmaları sırasında istikrarı sağlayan önemli bir faktördür. Yüksek varlık kalitesi, banka performansını güçlendirirken, etkili likidite yönetimi ise bankaların sürekli başarısı için hayati öneme sahiptir.

Keywords

• Ticari Bankalar
• Performans Değerlendirmesi
• Gri İlişki Analizi
• Finansal Göstergeler
• Birleşik Krallık Bankacılık Sistemi

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