The comparison of financial performances of participation and deposit banks by mutivariate decision making methods: An application on the banks traded in İstanbul Exchange (2004-2014)

The structure of healthy financial system in the countries is closely related to the banking system in these countries. Because banks are the most important building stone of the financial systems. In this study, performances of the 2 participation banks, 12 deposit banks which are traded in BIST, have been examined with multi-criteria decision-making methods. In this study Gray Relational analysis, TOPSIS and VIKOR analysis methods were used. According to GRAY methods Vakıfbank has the highest performance whereas Şekerbank has the lowest. Also according to TOPSIS analysis, it can be seen that Vakıfbank still has the highest performance. However, according to the TOPSIS analysis, Bank Asya has the lowest performance. In VIKOR method Denizbank has the highest performance and Albaraka Türk has the lowest. In conclusion, the structure of the banking sector is profitable and it can be said that the sector is growing in each passing day. However Bank Asya's troubled situation caused a decline in its performance and this bank could not exhibit the expected performance. Key Words: Participation Banks, Deposit Banks, TOPSIS, VIKOR, Gray Relational Analysis, Private Financial Institutions.