Within the framework of the global crisis, financial performance analysis of participation banks and commercial banks with TOPSIS method

Banks are financial institutions that are intermediaries in the process of using people's money. In the literature they said that the first banks were the temples, and the bankers were the clergy. Commercial banking dates back to 3500 BC. Participation banking extends to 2123-2081 BC. In the financial system, commercial banking acts basis on interest while participation banking acts on the basis of profit share. In this study, Participation Banks and Commercial Banks were analyzed which ones are operating in Turkey. Analyzes were made using data belongs the pre-crisis period (2005-2008), crisis period (2008-2011) and post-crisis period (2011-2015) of the banks. A total of 13 banks (3 Participation Banks, 10 Commercial Banks) were included in the study. The financial performance of the banks was evaluated periodically. Bank Asya, which had been in existence during this period, was excluded from the evaluation due to the termination of its activities. The financial data used in the analysis were obtained from Banking Regulation and Supervision Agency (BDDK), Turkish Banking Association (TBB), Turkey Participation Banks Association (TKBB) and related internet sites. Banks' performance is measured by the TOPSIS method, which is a multi-criteria decision-making method. As a result of the study, Turkey has been performing better than expected from other countries because of the precautions after the negativities in 2001 crisis. It is observed that the performances of the participation banks in the global crisis period are good when the financial performance of the commercial banks is successful before the global crisis and after the global crisis. Before and after the crisis, commercial banks seemed to be in the first place, but in the crisis period (2008), the participation banks are performing better and are more profitable in terms of their financial value. Keywords: Financial Performance, Commercial Banks, Participation Banks, TOPSIS