Performance Evaluation of Deposit Banks with Financial Ratios: Combined Use of Objective and Subjective Criteria Weighting Methods (Combined Entropy-SWARA Based EDAS Method)

Abstract

The aim of the study is to examine the performance of deposit banks in Turkey in 2020 with Multi-Criteria Decision Making (MCDM) methods. 10 criteria are determined and 17 deposit banks are analyzed. While calculating the weights of the evaluation criteria, the results of objective Entropy and subjective SWARA methods are used. Then, the calculated weights are combined with the Bayesian approach; optimal weights are obtained and used as inputs in the EDAS method. The most important criteria are identified as Net Profit (Loss) for the Period/Paid in Capital, Loans Received/Total Assets and Non-Performing Loans/Total Loans. The least important criteria are Interest Income/Total Assets, Total Revenues/Total Expenses and Interest Income/Interest Expenses. EDAS method results show that the top three most successful banks in 2020 are Garanti Bankası, İş Bankası and Akbank, respectively. Despite that, three most unsuccessful banks are Alternatif Bank, Odea Bank and Şekerbank.