A hybrid framework for assessing Pakistani commercial bank performance using multi-criteria decision-making
Abstract Overall bank performance in a particular year or period is important to all banking industry stakeholders, as it indicates their success or failure relative to predetermined targets. Due to conflicting criteria and uncertainties, assessing bank performance is a complicated decision-making p...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2025-01-01
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| Series: | Financial Innovation |
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| Online Access: | https://doi.org/10.1186/s40854-024-00728-x |
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| author | Özcan Işık Mohsin Shabir Gülay Demir Adis Puska Dragan Pamucar |
| author_facet | Özcan Işık Mohsin Shabir Gülay Demir Adis Puska Dragan Pamucar |
| author_sort | Özcan Işık |
| collection | DOAJ |
| description | Abstract Overall bank performance in a particular year or period is important to all banking industry stakeholders, as it indicates their success or failure relative to predetermined targets. Due to conflicting criteria and uncertainties, assessing bank performance is a complicated decision-making problem. The current paper proposes the Fuzzy Level Based Weight Assessment (F-LBWA), the Fuzzy Logarithm Methodology of Additive Weights (F-LMAW), and the Measurement Alternatives and Ranking according to the Compromise Solution (MARCOS) combination as a practical and robust decision-making tool to cope with many complex ambiguities. In the first phase, the suggested hybrid Multi-Criteria Decision-Making (MCDM) approach estimates the weight coefficients of the performance criteria with the aid of a combined version of the F-LBWA and F-LMAW methods. In the second phase, the MARCOS method determines the ranking performance of the decision alternatives. The introduced model is tested and validated on a case study assessing publicly traded bank performance in Pakistan. The findings obtained from the sensitivity analysis revealed that the presented F-LBWA-F-LMAW-MARCOS approach produces consistent solutions and is a reliable and effective procedure in rational decision-making. |
| format | Article |
| id | doaj-art-3a3e34cea10249bb8bed1cb3401bd642 |
| institution | Kabale University |
| issn | 2199-4730 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj-art-3a3e34cea10249bb8bed1cb3401bd6422025-01-12T12:36:25ZengSpringerOpenFinancial Innovation2199-47302025-01-0111113510.1186/s40854-024-00728-xA hybrid framework for assessing Pakistani commercial bank performance using multi-criteria decision-makingÖzcan Işık0Mohsin Shabir1Gülay Demir2Adis Puska3Dragan Pamucar4Department of Finance and Banking, Zara Veysel Dursun School of Applied Sciences, Sivas Cumhuriyet UniversitySchool of Economics, Shandong University of Finance and EconomicsVocational School of Health Services, Sivas Cumhuriyet UniversityDepartment of Public Safety, Government of Brčko DistrictDepartment of Operations Research and Statistics, Faculty of Organizational Sciences, University of BelgradeAbstract Overall bank performance in a particular year or period is important to all banking industry stakeholders, as it indicates their success or failure relative to predetermined targets. Due to conflicting criteria and uncertainties, assessing bank performance is a complicated decision-making problem. The current paper proposes the Fuzzy Level Based Weight Assessment (F-LBWA), the Fuzzy Logarithm Methodology of Additive Weights (F-LMAW), and the Measurement Alternatives and Ranking according to the Compromise Solution (MARCOS) combination as a practical and robust decision-making tool to cope with many complex ambiguities. In the first phase, the suggested hybrid Multi-Criteria Decision-Making (MCDM) approach estimates the weight coefficients of the performance criteria with the aid of a combined version of the F-LBWA and F-LMAW methods. In the second phase, the MARCOS method determines the ranking performance of the decision alternatives. The introduced model is tested and validated on a case study assessing publicly traded bank performance in Pakistan. The findings obtained from the sensitivity analysis revealed that the presented F-LBWA-F-LMAW-MARCOS approach produces consistent solutions and is a reliable and effective procedure in rational decision-making.https://doi.org/10.1186/s40854-024-00728-xBanking industryPerformance assessmentMCDMF-LBWAF-LMAWMARCOS |
| spellingShingle | Özcan Işık Mohsin Shabir Gülay Demir Adis Puska Dragan Pamucar A hybrid framework for assessing Pakistani commercial bank performance using multi-criteria decision-making Financial Innovation Banking industry Performance assessment MCDM F-LBWA F-LMAW MARCOS |
| title | A hybrid framework for assessing Pakistani commercial bank performance using multi-criteria decision-making |
| title_full | A hybrid framework for assessing Pakistani commercial bank performance using multi-criteria decision-making |
| title_fullStr | A hybrid framework for assessing Pakistani commercial bank performance using multi-criteria decision-making |
| title_full_unstemmed | A hybrid framework for assessing Pakistani commercial bank performance using multi-criteria decision-making |
| title_short | A hybrid framework for assessing Pakistani commercial bank performance using multi-criteria decision-making |
| title_sort | hybrid framework for assessing pakistani commercial bank performance using multi criteria decision making |
| topic | Banking industry Performance assessment MCDM F-LBWA F-LMAW MARCOS |
| url | https://doi.org/10.1186/s40854-024-00728-x |
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