Evaluating the Financial Performance of Turkish Banking Sector: A Fuzzy MCDM Approach

At the turn of the century Turkish economy was meltdown due to the one of the harshest crises experienced throughout her history. Since then, thanks to very strict measures taken by Turkish government, the economy proceeded to the recovery period. This period, however, seems to be interrupted once more again by 2008-2009 global financial crisis. In this study, we assess the financial performances of the different segments of the Turkish banking sector for the period between 2002 and 2010. In doing this, a combined methodology of Fuzzy Analytic Hierarchy Process (FAHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) methods is utilized. The results indicate that the adverse effect of the 2001 financial crisis on the Turkish banking sector is enormous while the ongoing global crisis is not so destructive in the sector.