Abstract
THE ANALYSING OF THE FINANCIAL PERFORMANCE OF BANKS BY USING FUZZY AHP AND FUZZY MOORA APPROACHES: CASE OF TURKISH BANKS
Banks, one of the most important actors of the financial sector, also play an important role in the functioning and stability of the financial system. Beside to investors, lenders and stakeholders, the assessment of bank performance is crucial in the development of the banking sector and in the identification of banks' own capabilities within the sector. In this direction, the fuzzy MOORA and fuzzy AHP methods are combined to evaluate the financial performances of 12 banks traded in Stock Exchange of Istanbul over the periods 2007-2016.
Firstly, criteria were compared with fuzzy AHP approach and the importance weights are determined given by Mandic et al. (2014) and Şişman and Doğan (2016). Then, the banks were ranked and evaluated according to the fuzzy MOORA approach by considering the importance of the criteria. As a result, “İş Bankası” takes place first bank and “ICBCT ” takes place last one in terms of financial performance. Moreover, in case the profitability ratios of liquidity ratios and capital and balance sheet ratios of banks are high, resulting in high financial performance.
Keywords
Turkish Banking Sector, Financial Performance, Fuzzy AHP, Fuzzy MOORA
