COMPARATIVE ANALYSIS OF ARMENIAN COMMERCIAL BANKS’ PERFORMANCE

Abstract

In order to get a tool for comparing banks efficiency, especially most efficient quarters the researchers suggest using fuzzy sets. For comparing various banks performances the time series of the ROA indicator of the banks are taken, presenting them in ascending order. A vague trigonometric image is obtained. Time series of seventeen Armenian banks quarterly ROA values has been analyzed. The concept of fuzzification and defuzzification is discussed in this paper. Crisp quantity is converted into a Pythagorean fuzzy set and respectively Pythagorean fuzzy set is converted into crisp quantity. After getting appropriate coefficients quarters have been classified into four groups from the more efficient to the less efficient. As a result it was possible to conclude when the banks were more efficient and when less. The method shows that is possible to use non regression new models for comparing and classifying banks performance determinants. It is a new approach in efficiency analyses.