Financial performance evaluation by fuzzy analytic hierarchy process and fuzzy topsis in banking sector

Due to the increased risks, uncertainties and competition in the banking sector, which has a significant impact on the country's economy, the performance evaluation studies of banks has become increasingly important day by day. In this study, the criteria which is affecting on financial performance of the banks are discussed and the criteria explanations are given in detail. On the basis of relevant criteria, according to the report which is taken from "The Banks Association of Turkey" for 2013-2018, the financial performance of the first eight banks which are ranked in accordance with size of assets, evaluated using Fuzzy AHP and Fuzzy Topsis. Within the scope of this study, a study group was established and the criteria affecting financial performance and the sub-criteria affecting these criteria were analyzed and compared with each other and the criteria importance ratios were determined by the Fuzzy AHP method. After determining the importance ratings of the criteria, the questionnaire was conducted to the relevant study group for specific criteria and the banks' performances were compared by evaluating the survey results with the Fuzzy TOPSIS and Fuzzy AHP methods. It is not possible for organizations and businesses to achieve a sustained success without performance follow-up. Bank performance evaluation is one of the most important tasks of the top management of banks. With the performance measurement, banks can assess their positions between competitors in the banking sector, which is highly competitive, and can determine the way to monitor to increase the preference in the sector. At the same time, it helps the bank to develop new strategies or new investment ideas by enabling to measure the extent to which it can achieve its specified strategic objectives. In this study the result of performance evaluation of inspected banks which lead that which banks have the highest performance and which banks should work to increase their performance and which criteria should be given priority at the performance improvement studies. In addition, investors benefit from the determination of the bank to be invested.