Abstract:

The comparative, integrated and practical monitoring of the financial performance of the banks in the Turkish banking sector is of particular importance for structural reasons. Multi-criteria decision making methods respond to this need. The aim of the study is to measure the financial performance of the Turkish deposit banks which are largest in total assets for the period 2008-2017. In this study, financial performance ranking is made with 15 important financial ratio of banks by using the Preference Selection Index (PSI) method which is a new multi-criteria decision making method in the literature. The Preference Selection Index method performs the weighting of the criteria within the name of general preference values. Analysis showed that the banks with the highest index value were Turkish Republic Ziraat Bank A.Ş and Akbank T.A.Ş, banks with the lowest index value were Denizbank A.Ş and Building and Credit Bank A.Ş. A strong correlation was found between the rankings of PSI and TOPSIS.

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