Ranking of Privately-Owned Deposit Banks in Turkey Using the Critic-Aras Method: A Comparison of the COVID-19 Pandemic Period and the Pre-Pandemic Period
Chapter from the book:
Ata,
A.
Y.
&
Akkaynak,
B.
(eds.)
2024.
The Current Studies in Economics and Finance.
Synopsis
This study aims to evaluate the performance of private-sector banks operating in Turkey before and during the Covid-19 pandemic. The research analyzes the financial performance of eight private-sector banks using financial data from the Banking Association of Turkey for the period between 2017 and 2022. Nine different financial criteria were used to assess the banks' performance, including Return on Assets (ROA), Capital Adequacy Ratio, and Liquid Assets / Short-Term Liabilities. The weights of the criteria were determined using the CRITIC method, and performance rankings were made using the ARAS method. The results indicate that the banks' performance differed before and during the Covid-19 pandemic, with Turkish Bank ranking highest in both periods, while Şekerbank ranked lowest in terms of performance.
The findings clearly highlight the impact of the Covid-19 pandemic on the banks' financial performance. Return on Assets (ROA) was identified as the most important criterion before the pandemic, and this criterion remained significant during the pandemic. However, the Liquid Assets / Short-Term Liabilities ratio was considered a less important criterion before the pandemic. This study helps to understand how banks responded to extraordinary situations like the Covid-19 pandemic and which financial indicators contributed to better performance.