Analysis of financial performances of deposit bank in Turkish banking sector using TOPSIS method

Economic fluctuations at the global level have caused major crises in the banking sector. These economic crises caused the bankruptcy of some banks and damaged the economies of the their countries. The negative effects of bankrupt banks on the country's economies have been large. Banks made efforts to repair their damaged image and negatively affected credibility. Measuring the performance of banks, which are the most important actors of the financial sector, has become important for the banking sector today. The purpose of the our study is to measure the financial performance of 21 deposit banks operating in the Turkish banking sector. As a result of performance measurement, the competitiveness of banks within the sector is determined. Performance measurements concern all parties, especially fund owners, bank management and investors. The most preferred methods for measuring their performances are multi-criteria decision-making methods. Our study consists of three parts. In the first part; the definition of the concept of bank, its birth, the brief history of the banking sector in the world and the birth of the Turkish banking sector, its classification, progress, basic problems, risks it faces and general evaluations of the sector are mentioned. In the second part of our study; the decision-making process, decision-making types, decision-making types in terms of the number of criteria, decision-making types in terms of available information, multi-criteria decision-making methods, definition, feature and operating method of the TOPSIS method are mentioned. In the third part of our study; literature review regarding the TOPSIS method was mentioned. The financial performances of 21 deposit banks operating in Turkey were analyzed using the TOPSIS method and comparisons of the banks over the years were included. It was interpreted according to the analysis results of which banks had high or low performance between 2013 and 2022. While making these comments, data on the websites of the Banking Regulation and Supervision Agency and the Banks Association of Turkey were used. With the help of these data, the performance scores of banks were calculated using the TOPSIS method and some results were obtained. As a result of the analysis, when the relevant analysis years are examined, the bank with the highest performance was Citibank. When looked at on a group basis, it was concluded that Ziraat Bank showed the highest performance among public capital banks. It has been observed that public capital banks exhibit lower performance compared to private and foreign capital banks.