Erdal DEMİR / MULTI-CRITERIA SUSTAINABILITY PERFORMANCE ANALYSIS OF COMMERCIAL BANKS IN TÜRKİYE BASED ON MPSI AND RAWEC METHODS

Abstract

This study introduces a novel decision-making framework for assessing the sustainability performance of banks listed on Borsa Istanbul (BIST) by integrating the Modified Preference Selection Index (MPSI) and the Ranking of Alternatives with Weights of Criterion (RAWEC) methods. To evaluate the applicability and effectiveness of the proposed model, a case study was conducted for the year 2022, focusing on the comparative sustainability performance of selected banks. The MPSI method was employed to objectively de termine the weights of selected financial and non financial performance indicators, while RAWEC, a relatively new Multi-Criteria Decision-Making (MCDM) technique, was employed to rank the banks. The results indicated that return on equity (ROE) was the most influential indicator in evaluating sustainability performance. According to the RAWEC rankings, Akbank demonstrated the highest level of multi-dimensional sustainability performance among the banks analyzed. Further more, a series of sensitivity analyses were con ducted to examine the robustness of the proposed MCDM algorithm. The outcomes confirmed the stability and reliability of the results under varying conditions, thereby supporting the validity of the integrated framework.

Keywords

Banking industry, Sustainability performance assessment, MCDM, MPSI, RAWEC.

JEL Classification

C54, G17, G22, G32, G41.

How to cite this article: Demir, E. (2025). Multi-criteria sustainability performance analysis of commercial banks in Türkiye based on MPSI and rawec methods. International Journal of Insurance and Finance, 5(1), 45-58. https://doi.org/10.52898/ijif.2025.4