Fuzzy Performance Evaluation with AHP and Topsis Methods: Evidence from Turkish Banking Sector after the Global Financial Crisis

Abstract

Banking sector plays a crucial role in economies. As a financial institution that leads the economy and investments, the performance measurement of the bank concerns different segments of the society. The main purpose of the study is to provide decision support for decision makers about the performance of banks by using multi criteria decision making techniques. In according with this purpose, the financial performance of twelve commercial banks are evaluated in terms of seventeen financial performance indicators by employing Fuzzy Analytic Hierarchy Process (henceforth Fuzzy AHP) and Fuzzy Technique for Order Preference by Similarity to Ideal Solution (henceforth Fuzzy TOPSİS) methods. The findings of the study show that these two methods rank banks in a similar manner.