Evaluation of private and public capital banks using multi-criteria decision making methods

Banks are one of the critical components of the financial system, both globally and in Turkey. Globalization, which creates an intensely competitive market, has also made it imperative for banking systems to implement regulations and performance measurements in order to address potential risks and crises. The performance analysis methods developed by various regulatory institutions and banks are crucial for assessing banks' current financial positions, the risks they may face in times of crises, their competitive strengths, and their overall financial performance. The frequency of these analysis methods' application and their construction based on financial data are critical factors to consider., Banks conduct performance evaluation techniques that impact their sustainability and future based on scientific principles. Multi-Criteria Decision-Making Methods (MCDM) yield better results due to their objectivity and reliability, making them preferable over subjective opinions. There is a possibility that performance analyses conducted by banks using different methods may lead to conflicting results. Therefore, the performance evaluation study of banks has been assessed using MCDM methods, based on scientific data. Between 2019 and 2023, both privately and publicly owned banks were evaluated using MCDM methods, including MOORA (Multi-Objective Optimization by Ratio Analysis), COPRAS (Complex Proportional Assessment), and EDAS (Evaluation Based on Distance from the Average Solution). The criteria weights used in the MCDM methods were determined using the SD (Standard Deviation) method. A total of 23 performance evaluation criteria were identified for use in the study.