Comparison of Turkish State Banks’ Performances via Multi-Criteria Performance Measurement Method

The banks are the most efficient aspects of countries. As efficiency and reliability of the banks increase, contributions of account owners to national economy increase as well. Increasing competitiveness and market share are important targets in banking sector as in other sectors. Banks need to increase their efficiency and productivity in order to enhance competitive capacity. Administrations are required to be aware of their strategies’ deficient, weak and strong aspects to develop their competitive capacity. Therefore, operations need to carry out performance analysis. According to the analysis results, revisions are made, new targets are aimed and strategies are taken if necessary. The market share of Turkish state banks in the banking sector is 30%. This share has not changed despite the development of the private sector. Moreover, these banks support areas which the private sectors do not support via credit.  Thus, state banks constitute data set to be used in performance measurement methods in the current study. Four-years of financial data were used between the years of 2010-2013. Financial ratios such as liquidity, capital sufficiency, profitability and active quality determine these banks’ performance rank. In this study, banks’ performance measurement methods were carried out by using the Grey Relational Analysis, one of the multi-criteria performance methods, and TOPSIS, and the results were compared.