Abstract:

The aim of this study is to measure and evaluate the financial performance of the Turkish banking system for the 11-year period (2009-2019) after the 2008 global financial crisis by using various “Multi-Criteria Decision Making” (CCC) methods. For this purpose, 14 financial criteria are used in the proposed performance evaluation model. In the framework of the hybrid model proposed in the performance evaluation, the weight coefficients of the financial criteria are first determined by ROC and ITARA methods. Then, the calculated weights are combined based on the Bayesian approach and the final weight coefficients of the financial criteria are calculated. According to weighting results, the most important three performance criteria are capital adequacy ratio, the ratio of equity to total assets and the ratio of non-performing loans to total loans, respectively. After this stage, the CODAS method is employed to measure and evaluate the financial performance of the banking system over the years. According to the results obtained using the CODAS method, the year in which the Turkish banking system is most successful (unsuccessful) in terms of selected financial indicators is 2009 (2018). In addition, the analyses carried out for the 11-year period indicate a significant instability in the financial performance of the Turkish banking sector.

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