Evaluation of the financial performance of participation banks during the COVID 19 pandemic period using the TOPSIS method

Participation Banking emerged because people with Islamic sensitivities did not want to use traditional banking that deals with interest. The logic of partnership lies at the basis of the operation of participation banking and commercial partnership is encouraged in Islam. Participation banking was also established in this manner. In addition to its unique features, participation banking also carries out other banking transactions such as credit card, financial support, fund disbursement and insurance transactions. However, while carrying out these operations, both legal and Islamic principles are followed. With the spread of participation banking, idle funds that were not included in the money market due to interest sensitivity were transferred to the commercial field and the transaction volume in the market expanded. In this study, it is aimed to analyze the financial performances of participation banks operating in our country during the Covid-19 Pandemic period using the TOPSIS method. TOPSIS method is one of the multi-criteria decision making methods. Within the scope of the study, for the financial performance analysis of six participation banks operating in our country between 2019 and 2022 (Profitability on Assets, Return on Equity, Equity/Total of Assets, Net Interest (Dividend) Income/Total of Assets, Profit Before Tax (BIT)/Total of Liabilities , Funds Provided / Total Assets, Funds Provided / Funds Collected) seven ratios were used. As a result of the analysis using the TOPSIS method, the highest performing participation bank in 2019 was Ziraat Participation Bank, the lowest performing participation bank was Albaraka Türk Participation Bank, the highest performing participation bank in 2020 was Kuveyt Türk Participation Bank, the lowest performing participation bank was The bank is Emlak Katılım Bankası, in 2021, Kuveyt Türk Katılım Bankası is again the highest performing participation bank, Emlak Katılım Bankası is the lowest performing participation bank, and in 2022, the highest and lowest performances have not changed, the highest performance is Kuveyt Türk Katılım Bankası, the lowest performance. It has been determined that it is Albaraka Türk Participation Bank.