Financial Soundness Performance in Member Countries of the Organization of Turkic States: an Application Using Multiple MCDA Methods for the Period of 2018-2022

Yıl 2025, Cilt: 25 Sayı: 3, 523 - 554, 06.08.2025

Yusuf Pala , Hakan Yıldırım

https://doi.org/10.21121/eab.20250305

Öz

The growing significance of cooperation between nations has become increasingly evident in recent years, largely due to the accelerating impact of globalization. Bilateral agreements and regional partnerships have been observed more frequently. One of the recent successful examples of such efforts is the Organization of Turkic States, which includes Azerbaijan, Kazakhstan, Kyrgyzstan, Uzbekistan, and Türkiye. This study examines the financial soundness performance of Organization of Turkic States member countries with sufficient data from the period of 2018 to 2022. Using data from the International Monetary Fund database, an integrated approach of CRITIC, GRA, and SAW methods is employed. The results, consolidated using the Borda Count technique, provide a ranking of the financial soundness of these countries during the specified period. According to the analysis findings, the financial soundness performance rankings are as follows: Kazakhstan, Türkiye, Uzbekistan, and Kyrgyzstan. This study is the first to comparatively examine the financial soundness performances of member countries of the Organization of Turkic States, and as such, it contributes to the literature in this area.

Anahtar Kelimeler

Financial Soundness , Financial Stability , Organization of Turkic States , CRITIC , GRA Method , SAW Method.

Kaynakça

• Ahmed, M. F., & Dogarawa, A. B. (2021). Financial soundness indicators and efficiency of listed deposit money banks in Nigeria, Gusau Journal of Accounting and Finance, 2(2), 17-17. https://doi:10.57233/gujaf.v2i2.67
• Akyüz, G., & Aka, S. (2017). Çok kriterli karar verme teknikleriyle tedarikçi performansı değerlendirmede toplamsal bir yaklaşım, Journal of Management & Economics Research, 15(2), 28 – 46. https://doi:10.11611/yead.277893
• Almahadin, H. A., Kaddumi, T., & Qais, A. K. (2020). Banking soundness-financial stability nexus: Empirical evidence from Jordan, Banks and Bank Systems, 15(3), 218, http://doi:10.21511/bbs.15(3).2020.
• Arzova, S. B., & Sahin B. S. (2024). The effect of financial soundness variables on bank performance: A macro-level analysis in MSCI emerging market index countries, Kybernetes, 53(8), 2605-2623, http://doi:10.1108/K-02-2023-0237
• BDDK (2024). Türk bankacılık sektörü temel göstergeleri Mart 2024, Retrived from https://www.bddk.org.tr/Veri/EkGetir/8?ekId=243, (Accessed in 10.06.2024).
• Bitetto, A., Cerchiello, P., & Mertzanis, C. (2023). Measuring financial soundness around the world: A machine learning approach, International Review of Financial Analysis, 85, 102451, http://doi: 10.1016/j.irfa.2022.102451
• Central Bank of the Republıc Of Azerbaijan (2024). Market actors, Retrived from https://www.cbar.az/page-195/market-actors, (Accessed in 07.07.2024).
• Central Bank of Uzbekistan (2023). Financial stability report for H1 2023, Retrived from https://cbu.uz/upload/medialibrary/151/2ugv7xjycknyjtb2ex6sbzv3gwe4hcbd/FSR_H1_2023.pdf, (Accessed in 10.07.2024).
• Doumpos, M., Zopounidis, C., & Fragiadakis, P. (2016). Assessing the financial performance of European banks under stress testing scenarios: A multicriteria approach, Operational Research, 16, 197-209.
• Gaganis, C., Pasiouras, F., & Zopounidis, C. (2006). A multicriteria decision framework for measuring banks' soundness around the world, Journal of Multi‐Criteria Decision Analysis, 14(1‐3), 103-111, http://doi:10.1002/mcda.405
• Geršl, A. & Heřmánek, J. (2007). Financial stability indicators: Advantages and disadvantages of their use in the assessment of financial system stability, CNB Financial Stability Report 2006, Occasional Publications-Chapters in Edited Volumes, Czech National Bank, 69-79.
• Ginevičius, R., & Podviezko, A. (2013). The evaluation of financial stability and soundness of Lithuanian banks, Economic Research-Ekonomska Istraživanja, 26(2), 191-208, http://doi:10.1080/1331677X.2013.11517616
• Ilgın, K. S. (2024). The effects of IMF financial soundness indicators of Turkish commercial banks on the financial development index, International Journal of Public Finance, 9(1), 105-124, http://doi:10.30927/ijpf.1428422
• IMF (2024). Republıc of Kazakhstan Financial System Stability Assessment IMF Country, Report no. 24/48, Retrived from file:///C:/Users/Admin/Downloads/1KAZEA2024003.pdf, (Accessed in 17.01.2024).
• Ioannidis, C., Pasiouras, F., & Zopounidis, C. (2010). Assessing bank soundness with classification techniques, Omega, 38(5), 345-357, http://doi:10.1016/j.omega.2009.10.009
• Lansdowne, Z. F., & Woodward, B. S. (1996). Applying the borda ranking method, Air Force Journal of Logistics, 20(2), 27-29.
• Marjanović, I., & Popović, Ž. (2020). MCDM approach for assessment of financial performance of Serbian banks. A. Horobet, P. Polychronidou and A. Karasavvoglou (eds), Business performance and financial institutions in Europe, Contributions to Economics (71-90), Springer International Publishing, https://doi.org/10.1007/978-3-030-57517-5_5
• Masud, M. A. K., & Haq, M. M. (2016). Financial soundness measurement and trend analysis of commercial banks in Bangladesh: An observation of selected banks, European Journal of Business and Social Sciences, 4(10), 159-184.
• National Bank of the Kyrgyz Republic (2023). The financial sector stability report of the Kyrgyz Republic, according to the results of the first half of 2023, Retrived from https://www.nbkr.kg/DOC/13032024/000000000062062.pdf, (Accessed in 13.07.2024).
• Navajas, M. C., & Thegeya, A. (2013). Financial soundness indicators and banking crises, WP/13/263, International Monetary Fund.
• Noman, A. H. M., & Isa, C. R. (2021). Financial soundness and macroprudential regulation of banks in ASEAN-5 countries. W. L. Filho (ed.), Reduced inequalities (241-253), Springer International Publishing, doi:10.1007/978-3-319-95882-8_8.
• Okur, M., Köse, A., & Akpınar, Ö. (2021). The soundness of financial institutions in the fragile five countries, International Journal of Business Research and Management (IJBRM), 12(3), 89-102, http://www.cscjournals.org/journals/IJBRM/description.php
• Ouma, M. O., & Kirori, G. N. (2019). Evaluating the financial soundness of small and medium-sized commercial banks in Kenya: An application of the bankometer model, International Journal of Economics and Finance, 11(6), 93-100, http://doi:10.5539/ijef.v11n6p93
• Organization of Turkic States (2024a). History of organization, Retrived from https://www.turkicstates.org/en/organizasyon-tarihcesi, (Accessed in 21.06.2024).
• Organization of Turkic States (2024b). Member states, Retrived from https://www.turkicstates.org/tr/uye-ulkeler, (Accessed in 21.06.2024).
• Ozer, A., Unal, S., & Çömlekçi, İ. (2024). Küresel finansal stresin Türk devletlerinin ekonomileri üzerindeki etkisi, Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi, 27(1), 18-30, http://doi:10.29249/selcuksbmyd.1319691
• Radulescu, M., Fedajev, A., & Nikolic, D. (2017). Ranking of EU national banking systems using multi-criteria analysis in the light of Brexit, Acta Oeconomica, 67(4), 473-509, http://doi:10.1556/032.2017.67.4.1
• Rahman, Z. (2017). Financial soundness evaluation of selected commercial banks in Bangladesh: An application of bankometer model, Research Journal of Finance and Accounting, 8(2), 63-70.
• Roy, S., & Das, A. (2018). Application of TOPSIS method for financial performance evaluation: A study of selected scheduled banks in Bangladesh, Journal of Commerce and Accounting Research, 7(1), 24-29.
• Salina, A. P., Zhang, X., & Hassan, O. A. (2021). An assessment of the financial soundness of the Kazakh banks, Asian Journal of Accounting Research, 6(1), 23-37, http://doi:10.1108/AJAR-03-2019-0022
• San Jose, A., & Georgiou, A. (2008). Financial soundness indicators (FSIs): framework and implementation, IFC Bulletin, 31, 277-282.
• Seyedi, S. A., & Abdoli, M. R. (2019). Modeling and rating financial soundness indicators of commercial banks using confirmatory factor analysis and TOPSIS method, Iranian Journal of Finance, 3(3), 107-136, http://doi:10.22034/ijf.2020.182468.1068
• Sjauš, B. T., & Žaja, M. M. (2022, June). Analysis of the covid-19 pandemic impact on the financial soundness indicators of financial institutions: case of the republic of Croatia, Proceedings of FEB Zagreb International Odyssey Conference on Economics and Business (Vol. 4, No.1, pp. 658-670), University of Zagreb, Faculty of Economics and Business.
• Sugiyarto, G. (2015). Financial soundness indicators for financial sector stability: A tale of three Asian countries, Asian Development Bank, Retrived from https://www.adb.org/sites/default/files/publication/173687/fsi-3-asian-countries.pdf, (Accessed in 30.06.2024).
• Sundararajan, V., Enoch, C., San Jose, A., Hilbers, P., Krueger, R., Moretti, M., & Slack, G. (2002). Financial soundness indicators: analytical aspects and country practices, 212, Washington, DC: International Monetary Fund.
• Suresh, N., Ligori, A., Khan, S., & Khan, S. A. (2019). Comparative financial performance and financial soundness of banks in Bhutan: Application of dupont and bankometer models, International Journal of Psychosocial Rehabilitation, 23(1), 441-448.
• Szymczyk, K., Bağcı, H., Kaygın, C., & Şahin, D. (2023). A comparison of the entrepreneurial performance of Asian-oceanian countries via the multi-criteria decision-making techniques of critic, aras, waspas, mairca and borda count methods, Acta Polytechnica Hungarica, 20(3), 2023, 65-81, http://doi: 10.12700/aph.20.3.2023.3.5
• World Bank (2023). Kazakhstan: Strengthening public finance for inclusive and resilient growth, Public Finance Review June 2023, Retrived from https://documents1.worldbank.org/curated/en/099713202282422335/pdf/IDU15c61946a1a153142771b1ff1d0f0745dcae7.pdf?_gl=1*1b5f1xf*_gcl_au*MzI5MTAwMTc1LjE3MjM4MTU0MzU, (Accessed in 05.07.2024).
• World Bank (2024a). Overview – Azerbaijan, Data World Bank, Retrived from https://data.worldbank.org/country/azerbaijan, (Accessed in 03.07.2024).
• World Bank (2024b). Overview – Kazakhstan, Data World Bank, Retrived from https://www.worldbank.org/en/country/kazakhstan/overview, (Accessed in 04.07.2024).
• World Bank (2024c). Overview – Kyrgyzstan, Data World Bank, Retrived from https://www.worldbank.org/en/country/kyrgyzrepublic/overview, (Accessed in 05.07.2024).
• World Bank (2024d). Overview – Uzbekistan, Data World Bank, Retrived from https://www.worldbank.org/en/country/uzbekistan/overview, (Accessed in 05.07.2024).
• World Bank (2024e). Overview – Türkiye, Data World Bank, Retrived from https://www.worldbank.org/en/country/turkey/overview, (Accessed in 06.07.2024).
• Yılmaz, N. (2023). Financial performance of the US deposit banks: The entropy based Paris method. C. Karaca and M. F. Buğan (eds), Finansal Piyasaların Evrimi-II (19-31), Özgür Yayın Dağıtım.