Performance Ranking of Development and Investment Banks: ANP Application

Abstract

Traditionally, Analytic Hierarchy Process (AHP) and Analytic Network Process (ANP) methods used for Multi-criteria decision making problems. Hierarchical definitions are not enough when relations between the components of multi-criteria decision-making problems are not one-sided rather mutual, Both AHP and ANP based on mutual comparison. ANP is the general form of AHP and considers the interactions and feedbacks between the components which are not directly related rather than creating a network that makes it possible to able to eliminating the levels which are in the hierarchical structure. In this study, ANP model based on the main criteria which are capital adequacy, asset quality, liquidity, profitability and income - expenditure and related 13 criteria which is known sub-criteria of development and investment banks. The framework investigates financial performances of 6 privately-owned development and investment banks by using Analytic Network Process based on experts’ opinions and related literature for the period 2011–2015 in Turkey.