Balanced Scorecard-based Performance Assessment of Turkish Banking Sector with Analytic Network Process

Hasan Dincer, Umit Hacioglu, Serhat Yuksel

Abstract


In the last decade, Performance assessment of banking sectors in advanced economies became a prominent issue investment decisions. In this paper, it is aimed to evaluate the balanced-scorecard based performance of Turkish banking sector with using Analytic Network Process Approach. Within this scope, all 33 deposit banks were intended to analyze out of 34 banks. Within this scope, we made an analysis in order to determine which perspectives of balanced scorecard approach is appropriate for each type of banks (state banks, private banks, foreign banks). In this study, we used Analytic Network Process (ANP) approaches so as to achieve this objective. With balanced-scorecard performance assessment of banking sector using ANP approach, all the factor priorities have been extracted and normalized to one for each cluster and final priorities have been obtained. The final priorities and rankings of the each perspective of balanced score card and the type of bank ownership have been assessed in the model. According to the results of the analysis, Findings demonstrate that (i) financial factor of balanced score card approach has the first rank with 65.7 percent; (ii) Customer perceptive is in the second rank with 22.1 percent. (iii)Third and fourth ranks have close results, (iv) learning and growth stays in the third rank with 6.3 percent (v) internal factor has the weakest importance with 5.9%, (vi) state banks into bank ownership have the highest rank with 53.9 percent, (vii) Private owned banks are the second in the relative performance of the bank groups with 36.1%, (viii) Balanced scorecard based performance of foreign banks are replaced in the last order with approximately 10%.  


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International Journal of Decision Sciences & Applications- by Umit Hacioglu is licensed under aCreative Commons Attribution-NonCommercial 4.0 International License.

 

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