Abstract
The paper proposed a Fuzzy Multiple Criteria Decision Making (FMCDM) approach for banking performance evaluation. Drawing on the four perspectives of a Balanced Scorecard (BSC), this research first summarized the evaluation indexes synthesized from the literature relating to banking performance. Then, for screening these indexes, 23 indexes fit for banking performance evaluation were selected through expert questionnaires. Furthermore, the relative weights of the chosen evaluation indexes were calculated by Fuzzy Analytic Hierarchy Process (FAHP). And the three MCDM analytical tools of SAW, TOPSIS, and VIKOR were respectively adopted to rank the banking performance and improve the gaps with three banks as an empirical example. The analysis results highlight the critical aspects of evaluation criteria as well as the gaps to improve banking performance for achieving aspired/desired level. It shows that the proposed FMCDM evaluation model of banking performance using the BSC framework can be a useful and effective assessment tool.
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