LONG-TERM PERFORMANCE EVALUATION OF DEPOSIT BANKS WITH MULTI-CRITERIA DECISION MAKING TOOLS: THE CASE OF TURKEY

Abstract

In this study, it is aimed to measure the long term performance of deposit banks operating in Turkey with an integrated MCDM framework. The effect of stock market indicators is also considered when evaluating the performance of deposit banks. The arithmetic average of the selected ratios between 2014 and 2018 is calculated to obtain long term performance indicators. The weights of the criteria are set with the Best-Worst Method. Five different MCDM tools, namely ARAS, EDAS, MOORA, OCRA and TOPSIS, are used to evaluate the long-term performance of banks. The financial ratio, which has the highest importance, is liquid asset / total assets ratio, according to the expert evaluations. The average return on assets and shareholders’ equity/total assets ratio is determined as highly correlated criteria with the final score.