MULTI-CRITERIA ANALYSIS OF BANKS’ PERFORMANCES

Abstract

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

Keywords

• MCDM, VIKOR Method, Banking Sector

References

1. Aydogan Kursat and Booth G.Geoffrey (1996), “Performance Characteristics of Private and tate
2. Owned Banks: The Turkish Case”, Managerial Finance, 22(10), pp.18-39. Bank Association of Turkey (2009), www.tbb.org.tr , [Accessed 15.04.2010]
3. Mercan Muhammed, Reisman Arnold, Yolalan Reha and Emel Ahmet Burak (2003), “The Effect of Scale and Mode of Ownership on the Financial Performance of the Turkish Banking Sector:
4. Results of a DEA-Based Analysis”, Socio-Economic Planning Sciences, 37(3), pp.185-202. Opricovic Serafim, 1998, Multicriteria Optimization of Civil Engineering System. Faculty of Civil
5. Engineering, Belgrade. Opricovic Serafim and Tzeng Gwo-Hshiung (2007), “Extended VIKOR Method in Comparison with Outranking Methods”, European journal of Operational Research, 178, pp.514-529.
6. Opricovic Serafim and Tzeng Gwo-Hshiung (2004), “Compromise Solution by MCDM methods:
7. A Comparative analysis of VIKOR and TOPSIS”, European Journal of Operational Research, , pp.445-455. Ozkan-Gunay E.Nur and Tektaş Arzu (2006), “Efficiency Analysis of the Turkish banking Sector in Precrisis and Crisis Period: A DEA Approach” , Contemporary Economic Policy, 24(3), pp.418-431
8. Rakocevic Svetlana and Dragasevic Zdenka (2009), “Analysis of the Efficiency of Banks in

9. Montenegro Using the AHP” Proceedings of Tenth International Symposium on Analytic Hierarchy Process (ISAHP 2009), University of Pittsburgh, USA.
10. (http://www.isahp.org/2009Proceedings/index.htm)
11. Seçme Neşe Yalçın, Bayrakdaroğlu Ali and Kahraman Cengiz (2009), “Fuzzy Performance
12. Evaluation in Turkish Banking Sector using Analytic Hierarchy Process and TOPSIS”, Expert Systems With Applications, 36, pp.11699-11709.
13. Yue Piyu (1991) “Data Envelopment Analysis and Commercial Bank Performance: a Primer with
14. Applications to Missouri Banks”, Federal Reserve Bank of St. Louis, issue Jan, pp. 31-45.