CAMELS-ESG Risk Performance Assessment in Banking Using a Grey Multi-Criteria Decision-Making Approach

Osman Yavuz Akbulut; Yusuf Akgül

CAMELS-ESG Risk Performance Assessment in Banking Using a Grey Multi-Criteria Decision-Making Approach

Abstract

The sustainability of the banking industry increasingly depends on the effective integration of traditional financial soundness indicators with environmental, social, and governance (ESG) risk considerations. In this research, a novel grey-based group decision-making framework is developed to assess the multidimensional CAMELS–ESG risk performance of banks operating in Turkey under conditions of uncertainty and incomplete information. The suggested methodology integrates the grey extensions of the Grey Symmetry Point of Criterion (G-SPC) and Grey Preference Selection Index (G-PSI) methods to objectively determine criterion importance weights, which are subsequently aggregated through a newly developed linear weight integration operator. The ranking of bank alternatives is then derived using the Grey Ranking of Alternatives by Criterion Weights (G-RAWEC) approach. The empirical analysis is conducted on eight deposit banks using six CAMELS-based financial indicators and one ESG risk criterion. The results reveal that ESG risk, impaired loans to gross loans, and liquid assets to deposits constitute the most influential factors in shaping banks’ overall multidimensional performance. The ranking outcomes indicate that Akbank achieves the highest performance, followed by Yapı Kredi Bank and Garanti BBVA, whereas Şekerbank, QNB Finansbank, and Vakıfbank exhibit relatively lower performance levels. Extensive robustness and sensitivity analyses-including parameter variation, comparison with alternative grey-based MCDM methods, rank reversal testing, and criterion elimination scenarios-confirm the stability, reliability, and internal consistency of the proposed framework. This study contributes to both the banking performance and MCDM literature. The proposed framework offers a transparent and practically applicable decision-support tool for regulators, bank managers, and investors seeking to assess banking performance in uncertain and complex decision environments.

Keywords

References

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Details

Primary Language

English

Subjects

Banking Regulation and Supervision , Risk management in Banking, Financial Institutions, Commercial Banking

Journal Section

Research Article

Authors

Osman Yavuz Akbulut ^*
0000-0001-9225-1728
Türkiye

Yusuf Akgül
0000-0001-7327-3913
Türkiye

Publication Date

June 30, 2026

Submission Date

December 25, 2025

Acceptance Date

April 21, 2026

Published in Issue

Year 2026 Volume: 13 Number: 2

IZ

https://izlik.org/JA23JG24TJ

Cite

RIS / Bibtex

APA

Akbulut, O. Y., & Akgül, Y. (2026). CAMELS-ESG Risk Performance Assessment in Banking Using a Grey Multi-Criteria Decision-Making Approach. Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty, 13(2), 800-827. https://izlik.org/JA23JG24TJ

AMA

1.Akbulut OY, Akgül Y. CAMELS-ESG Risk Performance Assessment in Banking Using a Grey Multi-Criteria Decision-Making Approach. MAKU IIBFD. 2026;13(2):800-827. https://izlik.org/JA23JG24TJ

Chicago

Akbulut, Osman Yavuz, and Yusuf Akgül. 2026. “CAMELS-ESG Risk Performance Assessment in Banking Using a Grey Multi-Criteria Decision-Making Approach”. Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty 13 (2): 800-827. https://izlik.org/JA23JG24TJ.

EndNote

Akbulut OY, Akgül Y (June 1, 2026) CAMELS-ESG Risk Performance Assessment in Banking Using a Grey Multi-Criteria Decision-Making Approach. Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty 13 2 800–827.

IEEE

[1]O. Y. Akbulut and Y. Akgül, “CAMELS-ESG Risk Performance Assessment in Banking Using a Grey Multi-Criteria Decision-Making Approach”, MAKU IIBFD, vol. 13, no. 2, pp. 800–827, June 2026, [Online]. Available: https://izlik.org/JA23JG24TJ

ISNAD

Akbulut, Osman Yavuz - Akgül, Yusuf. “CAMELS-ESG Risk Performance Assessment in Banking Using a Grey Multi-Criteria Decision-Making Approach”. Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty 13/2 (June 1, 2026): 800-827. https://izlik.org/JA23JG24TJ.

JAMA

1.Akbulut OY, Akgül Y. CAMELS-ESG Risk Performance Assessment in Banking Using a Grey Multi-Criteria Decision-Making Approach. MAKU IIBFD. 2026;13:800–827.

MLA

Akbulut, Osman Yavuz, and Yusuf Akgül. “CAMELS-ESG Risk Performance Assessment in Banking Using a Grey Multi-Criteria Decision-Making Approach”. Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty, vol. 13, no. 2, June 2026, pp. 800-27, https://izlik.org/JA23JG24TJ.

Vancouver

1.Osman Yavuz Akbulut, Yusuf Akgül. CAMELS-ESG Risk Performance Assessment in Banking Using a Grey Multi-Criteria Decision-Making Approach. MAKU IIBFD [Internet]. 2026 Jun. 1;13(2):800-27. Available from: https://izlik.org/JA23JG24TJ