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Multi-Criteria Decision-Making Model Evaluating the Performance of Vietnamese Commercial Banks

Author

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  • Dinh Xuan Cuong
  • Hoang Thi Hien
  • Tran Long

Abstract

The commercial banks (CBs) performance evaluating has been a necessary problem in currently integration trend and usually implemented by a committee of experts under criteria selected. Therefore, it is considered as a Multi - Criteria Decision - Making model (MCDM). Nowadays, there have been many researches proposing various standards and models to evaluate and rank CBs. But in Vietnam, the number of studies related to the Vietnamese banking evaluation model have still been limited. As a result, this study develops a multi-criteria decision model integrating Fuzzy Analytical Hierarchy Process (FAHP) and Fuzzy the Technique for Order of Preference by Similarity to Ideal Solution (FTOPSIS). The proposed model has evaluated and ranked five Vietnamese commercial banks including CTG, VCB, BIDV, TCB and MB. The paper revealed their ranks. Besides, the results of the research show that the Analytical Hierarchy Process (AHP) model is suitable for applying it to the process evaluating bank performance.

Suggested Citation

  • Dinh Xuan Cuong & Hoang Thi Hien & Tran Long, 2018. "Multi-Criteria Decision-Making Model Evaluating the Performance of Vietnamese Commercial Banks," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 9(1), pages 132-141, January.
    • Handle: RePEc:jfr:ijfr11:v:9:y:2018:i:1:p:132-141
    DOI: 10.5430/ijfr.v9n1p132
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    References listed on IDEAS

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