A CAMELS-BASED INTEGRATED MCDM MODEL FOR FINANCIAL PERFORMANCE ASSESSMENT IN THE BANKING SECTOR

Özet

This study aims to evaluate the financial performances of BIST-listed deposit banks from a multidimensional and objective point of view within the scope of the CAMELS assessment system. It attempts to fill this gap by presenting an integrated model as a contribution to the literature which is in fact another step towards overcoming limitations arising from performance assessments based on a single technique or indicator. The Criterion Importance based on Sum of Squares (CRISUS) and Maximum of Criterion (MAXC) procedures are jointly used for weighting, while finding final weights are integrated with Measurement of Alternatives and Ranking according to Compromise Solution (MARCOS) procedure in order to define relative performance among banks. Validity and applicability tests for the developed model were carried out through an application on eight banks operating on BIST using annual data covering 2020-2024. Results indicated that banking performance is mostly determined by income structure, profitability, and risk management dimensions. Specifically, the ratio of net non-interest income to total assets, return on average assets, and the ratio of non-performing loans to total loans emerge as the most important criteria. The rankings obtained via the MARCOS approach show that Garanti, Akbank, and Yapı ve Kredi are the top-performing banks during the examined period. Sensitivity analyses further confirm that the offered framework produces stable, robust, and method-independent findings. Overall, the results highlight the significance of multicriteria and integrated approaches in banking performance assessment, present both methodological contributions to the academic literature and practical decision-support and policy implications for bank managers and regulatory authorities.

Abstract

This study aims to evaluate the financial performances of BIST-listed deposit banks from a multidimensional and objective point of view within the scope of the CAMELS assessment system. It attempts to fill this gap by presenting an integrated model as a contribution to the literature which is in fact another step towards overcoming limitations arising from performance assessments based on a single technique or indicator. The Criterion Importance based on Sum of Squares (CRISUS) and Maximum of Criterion (MAXC) procedures are jointly used for weighting, while finding final weights are integrated with Measurement of Alternatives and Ranking according to Compromise Solution (MARCOS) procedure in order to define relative performance among banks. Validity and applicability tests for the developed model were carried out through an application on eight banks operating on BIST using annual data covering 2020-2024. Results indicated that banking performance is mostly determined by income structure, profitability, and risk management dimensions. Specifically, the ratio of net non-interest income to total assets, return on average assets, and the ratio of non-performing loans to total loans emerge as the most important criteria. The rankings obtained via the MARCOS approach show that Garanti, Akbank, and Yapı ve Kredi are the top-performing banks during the examined period. Sensitivity analyses further confirm that the offered framework produces stable, robust, and method-independent findings. Overall, the results highlight the significance of multicriteria and integrated approaches in banking performance assessment, present both methodological contributions to the academic literature and practical decision-support and policy implications for bank managers and regulatory authorities.

Yazarlar

Ezgi AYDOĞAN

Anahtar Kelimeler

Banking sector, CAMELS, Financial Performance, MCDM, CRISUS, MAXC, MARCOS

JEL Codes

C54, G17, G21, G32, G53

Yayın Bilgileri

Cilt 6, Sayı 1, 2026 · Sayfa 1-28

DOI: 10.52898/ijif.2026.1

Dosyalar