FINANCIAL PERFORMANCE TEST OF PUBLIC BANKS IN TURKEY: AN APPLICATION OF PROMETHEE

Abstract

Performance test has become an important tool for banking sector and banks should implement performance test if they want to increase their level of competitiveness in today’s highly competitive environment. Banking sector has always been very important factor for developing national economy. Preference Ranking Organization Method for Enrichment Evaluations (PROMETHEE) is one of the most recent Multiple Criteria Decision Making (MCDM) methods and has been successfully implemented in many fields. This paper argues the possibility of using PROMETHEE method for measuring the financial performance of three public banks in Turkey by using two data sets. First data set is for the period from 2002 to 2007, and the second data set is from 2008 to 2012. Two data sets are determined and used in order to compare two periods – before the global financial crises (2002-2007), and during the global financial crises (2008-2012). PROMETHEE method is applied to the obtained data sets rigorously by using ten criteria for each bank. The results of this paper show the possibility of using the PROMETHHE method in order to determine financial performance of public banks in Turkey.

Keywords

• Banking sector, PROMETHEE, Financial Performance

Kaynakça

1. Akkaya ,G. Cenk , Ceren Uzar (2013), “The Usage Of Multiple-Criteria
2. Decision Making Techniques On Profitability And Efficiency: An Application Of Promethee”, International Journal Of Economics And Finance Studies, Vol 5, No 1, pp.149-156. ISSN: 1309-8055 (Online)
3. Bogdanovıc, Dejan, Nıkolıc Djordje, Ilıc Ivana (2012), “Mining method selection by integrated AHP and PROMETHEE method”, Printed version
4. ISSN 0001-3765 / Online version ISSN 1678-2690. http://www.tbb.org.tr/tr/banka-ve-sektor-bilgileri/istatistiki-raporlar/59, 07.2013.
5. Qu, Shuanghong, Li Hua, Pei Yunxia (2012), “Decision Making In
6. Investing: Application Of Interval-Promethee Based On The Composite Weight”, Journal of Theoretical and Applied Information Technology, th November 2012. Vol. 45 No.1, pp.239-245.
7. Taillandier, Patrick, Stinckwich Serge (2011), Using the PROMETHEE
8. Multi-Criteria Decision Making Method to DeŞne New Exploration Strategies for Rescue Robots, "IEEE International Symposium on Safety, Security, and Rescue Robotics (SSRR), Kyoto: Japan, pp. 1-22. Xu, Ling, Jian-Bo Yang (2001), “Introduction to Multi-Criteria Decision

9. Making and the Evidential Reasoning Approach”, Working Paper No. , pp.1-21.