Performance Assessment of Deposit Banks with CAMELS Analysis

Asian Research Consortium
Asian Journal of Research in Business Economics and Management
Vol. 6, No. 2, February 2016, pp. 32-56.
Asian Journal
of Research in
Business Economics
and
Management
ISSN 2249-7307
A Journal Indexed in Indian Citation Index
www.aijsh.org
Performance Assessment of Deposit Banks with
CAMELS Analysis using Fuzzy ANP- MOORA
Approaches and an Application on Turkish Banking
Sector
Hasan Dinçer*; Ümit Hacıoğlu**; Serhat Yüksel***
*Associate Professor,
School of Business and Management Sciences,
Istanbul Medipol University,
Kavacik, Istanbul, Turkey.
**Associate Professor,
School of Business and Management Sciences,
Istanbul Medipol University,
Kavacik, Istanbul, Turkey.
***Department of Board of Auditors,
Finansbank, İstanbul, Turkey.
DOI NUMBER-10.5958/2249-7307.2016.00009.8
Abstract
Performance assessment in banking sector has been attached to investment decisions and efficiency
analysis in the last decade. This study compares banking performance with using novel techniques
in Turkey. The aim of this study is to assess the performance of Turkish deposit banks with the
application of CAMELS analysis using Fuzzy ANP and MOORA approaches within the fuzzy
environment. In this study, the novel hybrid model has been adopted to CAMELS analysis with
related 17 different ratios for 23 deposits banks in Turkey. The major findings of this study are
(i)“capital adequacy” is the most significant component of CAMELS approach, which contributes
to banking stability and performance whereas “sensitivity to market risk” is the least important one
among the other 4 major components, and (ii) when viewing the overall ranking, Bank 13 with the
13.1 percent of asset size in the sector is at the first rank for the CAMELS-based performance
comparison, (iii) Bank 18with the 1.8 percent of asset size in the sector, has the lowest performance
score, (iv) there is a positive relationship between asset size and banking performance in Turkey.
Keywords: Banking; Performance; CAMELS; FUZZY; ANP; MOORA.
32
Dincer et al. (2016). Asian Journal of Research in Business Economics and Management,
Vol. 6, No. 2, pp. 32-56.
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