Performance Evaluation of Turkish Commercial Banks Using AHP and TOPSIS

Abstract

Measuring performance and determining the key factors of performance have been an important research topic in different sector in recent years. The main goal of this study is to evaluate the performance ranks of the Commercial banks in Turkey due to the fact that performances of Commercial banks are important at the stage of economic growth. In this research, the Commercial banks in Turkey ranked by TOPSIS method using weights of capital ratios obtained from AHP. The performance ranks of Commercial banks sorted according to their TOPSIS scores for the period 2009-2013. In this study, capital ratios of Turkish Commercial banks are placed in a hierarchical decision structure to establish pair-wise comparisons between the model parameters which are based on the subjective judgment of a group of experts. In order to find the performance order of the Commercial banks in Turkey according to financial ratios, calculated criteria and sub-criteria weights for each banks by using AHP to use in TOPSIS method. Performance scores of Commercial the banks obtained by TOPSIS method related with banks? financial ratios of AHP weights. Consequently, the performances and also the sector share of the commercial banks weren't changed for analyzed period.