EVALUATION OF BANKING PERFORMANCE OF THE BALKAN COUNTRIES WITH AN INTEGRATED MCDM APPROACH CONSIST OF ENTROPY AND OCRA TECHNIQUES
Mustafa Canakcıoglu
Economy & Business Journal, 2019, vol. 13, issue 1, 341-366
Abstract:
The purpose of this study is to evaluate the financial performances of Balkan region banks listed on their own country exchanges by using multi criteria decision-making methods: Entropy and OCRA (Occupational Repetitive Actions). For this purpose, 44 banks in 10 Balkan countries are included in the study. Data from 2015-2018 financial statements of these banks are utilized. We use total equity / total assets, total deposits / total assets and efficiency ratio as input factors; and net loans / total assets, net income / total assets, net income / total equity, non-interest income / operation income and net interest margin as output factors. Entropy and OCRA methods are used together for the first time in evaluating the financial performance of banks in Balkan countries. The weights of the criteria are determined by the Entropy method, and banks are ranked in terms of performance by the use of OCRA method. Our results exhibit that the large banks have the best performance in terms of financial performance value.
Keywords: banking sector; performance analysis; ocra; entropy; finance; mcdm (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:isp:journl:v:13:y:2019:i:1:p:341-366
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