Ceren UZAR

FINANCIAL PERFORMANCE TEST OF PUBLIC BANKS IN TURKEY: AN APPLICATION OF PROMETHEE

Performance test has become an important tool for banking sector and banks should implement performance test if they want to increase their level of competitiveness in today’s highly competitive environment. Banking sector has always been very important factor for developing national economy. Preference Ranking Organization Method for Enrichment Evaluations (PROMETHEE) is one of the most recent Multiple Criteria Decision Making (MCDM) methods and has been successfully implemented in many fields. This paper argues the possibility of using PROMETHEE method for measuring the financial performance of three public banks in Turkey by using two data sets. First data set is for the period from 2002 to 2007, and the second data set is from 2008 to 2012. Two data sets are determined and used in order to compare two periods – before the global financial crises (2002-2007), and during the global financial crises (2008-2012). PROMETHEE method is applied to the obtained data sets rigorously by using ten criteria for each bank. The results of this paper show the possibility of using the PROMETHHE method in order to determine financial performance of public banks in Turkey.

Keywords:

Banking sector, PROMETHEE Financial Performance,

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