Abstract:

Financial stability is generally defined in a wide range from the situation in which the basic functions in the financial markets are fulfilled to the situations where there are no financial crises. Banks stand out as the institutions that have the largest share in the financial system. Considering that the share of banks in the total sector in Turkey is 84%, the financial performances of especially large banks that have a weight in the sector can directly affect financial stability. Moving from this situation, the aim of this study is to measure and evaluate the financial stability performances of the top 10 commercial banks operating in the Turkish banking system, ranked in terms of asset size, between 2010 and 2020, through financial soundness. As performance criteria in the study, 8 sub-variables were selected from the financial soundness indicators created by the Central Bank of the Republic of Turkey. In the analysis, ENTROPI and ARAS methods, which are among the Multi-Criteria Decision Making methods, were used in an integrated manner. According to the results of the analysis made with financial soundness indicators, the top three banks in terms of financial stability performance were determined as Halk Bank, Ziraat Bank and Garanti Bank, respectively.

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