Financial Performance Analysis of Banks with Topsis and Fuzzy Topsis Approaches

Authors : Yüksel Akay ÜNVAN

Pages : 904-923

Doi:10.35378/gujs.730294

View : 23 | Download : 8

Publication Date : 2020-12-01

Article Type : Research Paper

Abstract :Banks are one of the key components in the world economy`s financial activities. With the increasing competitive environment, banks need to use their resources effectively. Effective and efficient operation of banks is one of the important issues of money and financial markets. Effective operation of banks that are at the center of the economy, and measuring and evaluating their performances both determine their positions in the sector and have strategic importance on process management of the country’s economy. Determining which criteria and weights will be determined for performance is very important in the multi-criteria decision making process. Fuzzy techniques have more sensitivity in such evaluations. Fuzzy approaches are preferred as the risk, uncertainty and competition continue to increase in the banking sector. In this study, the criteria that affect the financial performance of banks are determined. Based on relevant criteria, the first seven banks were ranked in total assets according to reports received from The Banks Association of Turkey for 2014-2018 financial year and a performance evaluation was done by using the TOPSIS and Fuzzy TOPSIS methods.
Keywords : Financial Performance, Banks, TOPSIS, Fuzzy TOPSIS