A Hybrid Multi-Criteria Decision Making (MCDM) Model Consisting of SD and COPRAS Methods in Performance Evaluation of Foreign Deposit Banks

Abstract

This study aims to employ a hybrid multi-criteria decision making (MCDM) model in foreign deposit banks' performance evaluation in the period from 2016 to 2019. Eight key indicators such as total assets, total loans, off-balance-sheet accounts, the total number of branches, total number of employees, ratio of personnel expenses to total assets, ratio of net interest income to total assets and capital adequacy ratio are identified for the assessment and rating of foreign banks in Turkey. The SD and the COPRAS methods are used for building the proposed model. In the first stage, priority weights of criteria are calculated using the SD method, while In the second stage, the COPRAS method is used in the performance evaluation of foreign banks. According to the proposed model results, Garanti Bank is the highest performing foreign bank in the period examined.

This study aims to employ a hybrid multi-criteria decision making (MCDM) model in foreign deposit banks' performance evaluation in the period from 2016 to 2019. Eight key indicators such as total assets, total loans, off-balance-sheet accounts, the total number of branches, total number of employees, ratio of personnel expenses to total assets, ratio of net interest income to total assets and capital adequacy ratio are identified for the assessment and rating of foreign banks in Turkey. The SD and the COPRAS methods are used for building the proposed model. In the first stage, priority weights of criteria are calculated using the SD method, while In the second stage, the COPRAS method is used in the performance evaluation of foreign banks. According to the proposed model results, Garanti Bank is the highest performing foreign bank in the period examined.