Fuzzy performance evaluation in Turkish Banking Sector using Analytic Hierarchy Process and TOPSIS

Neşe Yalçin Seçme*, Ali Bayrakdaroǧlu, Cengiz Kahraman

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

262 Citations (Scopus)

Abstract

The performance evaluation of banks has important results for creditors, investors and stakeholders since it determines banks' capabilities to compete in the sector and has a critical importance for the development of the sector. The aim of this study is to propose a fuzzy multi-criteria decision model to evaluate the performances of banks.The largest five commercial banks of Turkish Banking Sector are examined and these banks are evaluated in terms of several financial and non-financial indicators. Fuzzy Analytic Hierarchy Process (FAHP) and Technique for Order Performance by Similarity to Ideal Solution (TOPSIS) methods are integrated in the proposed model. After the weights for a number of criteria are determined based on the opinions of experts using the FAHP method, these weights are input to the TOPSIS method to rank the banks. The results show that not only financial performance but also non-financial performance should be taken into account in a competitive environment. Crown

Original languageEnglish
Pages (from-to)11699-11709
Number of pages11
JournalExpert Systems with Applications
Volume36
Issue number9
DOIs
Publication statusPublished - Nov 2009

Keywords

  • AHP
  • Fuzzy
  • Multi-criteria decision making
  • Performance evaluation
  • TOPSIS
  • Turkish Banking Sector

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