IDEAS home Printed from https://ideas.repec.org/a/spr/fininn/v11y2025i1d10.1186_s40854-024-00728-x.html
   My bibliography  Save this article

A hybrid framework for assessing Pakistani commercial bank performance using multi-criteria decision-making

Author

Listed:
  • Özcan Işık

    (Sivas Cumhuriyet University)

  • Mohsin Shabir

    (Shandong University of Finance and Economics)

  • Gülay Demir

    (Sivas Cumhuriyet University)

  • Adis Puska

    (Government of Brčko District)

  • Dragan Pamucar

    (University of Belgrade)

Abstract

Overall bank performance in a particular year or period is important to all banking industry stakeholders, as it indicates their success or failure relative to predetermined targets. Due to conflicting criteria and uncertainties, assessing bank performance is a complicated decision-making problem. The current paper proposes the Fuzzy Level Based Weight Assessment (F-LBWA), the Fuzzy Logarithm Methodology of Additive Weights (F-LMAW), and the Measurement Alternatives and Ranking according to the Compromise Solution (MARCOS) combination as a practical and robust decision-making tool to cope with many complex ambiguities. In the first phase, the suggested hybrid Multi-Criteria Decision-Making (MCDM) approach estimates the weight coefficients of the performance criteria with the aid of a combined version of the F-LBWA and F-LMAW methods. In the second phase, the MARCOS method determines the ranking performance of the decision alternatives. The introduced model is tested and validated on a case study assessing publicly traded bank performance in Pakistan. The findings obtained from the sensitivity analysis revealed that the presented F-LBWA-F-LMAW-MARCOS approach produces consistent solutions and is a reliable and effective procedure in rational decision-making.

Suggested Citation

  • Özcan Işık & Mohsin Shabir & Gülay Demir & Adis Puska & Dragan Pamucar, 2025. "A hybrid framework for assessing Pakistani commercial bank performance using multi-criteria decision-making," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-35, December.
    • Handle: RePEc:spr:fininn:v:11:y:2025:i:1:d:10.1186_s40854-024-00728-x
    DOI: 10.1186/s40854-024-00728-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40854-024-00728-x
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40854-024-00728-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sanjib Biswas & Shuvendu Majumder & Dragan Pamucar & Suman Kumar Dawn, 2021. "An Extended LBWA Framework in Picture Fuzzy Environment Using Actual Score Measures Application in Social Enterprise Systems," International Journal of Enterprise Information Systems (IJEIS), IGI Global, vol. 17(4), pages 37-68, October.
    2. Zbigniew Korzeb & Reyes Samaniego-Medina, 2019. "Sustainability Performance. A Comparative Analysis in the Polish Banking Sector," Sustainability, MDPI, vol. 11(3), pages 1-16, January.
    3. Miomir Stanković & Željko Stević & Dillip Kumar Das & Marko Subotić & Dragan Pamučar, 2020. "A New Fuzzy MARCOS Method for Road Traffic Risk Analysis," Mathematics, MDPI, vol. 8(3), pages 1-18, March.
    4. Morteza Yazdani & Dragan Pamucar & Prasenjit Chatterjee & Ali Ebadi Torkayesh, 2022. "“A multi-tier sustainable food supplier selection model under uncertainty”," Operations Management Research, Springer, vol. 15(1), pages 116-145, June.
    5. Guler Aras & Nuray Tezcan & Ozlem Kutlu Furtuna & Evrim Hacioglu Kazak, 2017. "Corporate sustainability measurement based on entropy weight and TOPSIS," Meditari Accountancy Research, Emerald Group Publishing Limited, vol. 25(3), pages 391-413, August.
    6. Ömer Faruk Görçün & Sarfaraz Hashemkhani Zolfani & Mustafa Çanakçıoğlu, 2022. "Analysis of efficiency and performance of global retail supply chains using integrated fuzzy SWARA and fuzzy EATWOS methods," Operations Management Research, Springer, vol. 15(3), pages 1445-1469, December.
    7. Radojko LUKIC, 2023. "Measurement and Analysis of The Information Performance of Companies in The European Union and Serbia Based on The Fuzzy LMAW and MARCOS Methods," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 27(1), pages 17-31.
    8. Hasan Dincer & Umit Hacioglu & Serhat Yuksel, 2020. "Balanced scorecard-based performance assessment of Turkish banking sector with the Analytic Network Process (ANP)," International Journal of Decision Sciences & Applications (2528-956X), Center for the Strategic Studies in Business and Finance, vol. 1(1), pages 01-12, December.
    9. Darko Božanić & Dragan Pamucar & Ibrahim Badi & Duško Tešić, 2023. "A decision support tool for oil spill response strategy selection: application of LBWA and Z MABAC methods," OPSEARCH, Springer;Operational Research Society of India, vol. 60(1), pages 24-58, March.
    10. Mandic, Ksenija & Delibasic, Boris & Knezevic, Snezana & Benkovic, Sladjana, 2014. "Analysis of the financial parameters of Serbian banks through the application of the fuzzy AHP and TOPSIS methods," Economic Modelling, Elsevier, vol. 43(C), pages 30-37.
    11. Morteza Yazdani & Pascale Zaraté & Edmundas Kazimieras Zavadskas & Zenonas Turskis, 2019. "A Combined Compromise Solution (CoCoSo) method for multi-criteria decision-making problems," Post-Print hal-02879091, HAL.
    12. Joseph Junior Aduba, 2022. "Framework for firm-level performance evaluations using multivariate linear correlation with MCDM methods: application to Japanese firms," Asia-Pacific Journal of Regional Science, Springer, vol. 6(1), pages 1-44, February.
    13. Ecer, Fatih, 2021. "A consolidated MCDM framework for performance assessment of battery electric vehicles based on ranking strategies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sarfaraz Hashemkhani Zolfani & Ramin Bazrafshan & Fatih Ecer & Çağlar Karamaşa, 2022. "The Suitability-Feasibility-Acceptability Strategy Integrated with Bayesian BWM-MARCOS Methods to Determine the Optimal Lithium Battery Plant Located in South America," Mathematics, MDPI, vol. 10(14), pages 1-18, July.
    2. Željko Stević & Dillip Kumar Das & Rade Tešić & Marijo Vidas & Dragan Vojinović, 2022. "Objective Criticism and Negative Conclusions on Using the Fuzzy SWARA Method in Multi-Criteria Decision Making," Mathematics, MDPI, vol. 10(4), pages 1-19, February.
    3. Haseli, Gholamreza & Yaran Ögel, İlkin & Ecer, Fatih & Hajiaghaei-Keshteli, Mostafa, 2023. "Luxury in female technology (FemTech): Selection of smart jewelry for women through BCM-MARCOS group decision-making framework with fuzzy ZE-numbers," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    4. Morteza Yazdani & Dragan Pamucar & Prasenjit Chatterjee & Ali Ebadi Torkayesh, 2022. "“A multi-tier sustainable food supplier selection model under uncertainty”," Operations Management Research, Springer, vol. 15(1), pages 116-145, June.
    5. Bakioglu, Gozde, 2024. "Selection of sustainable transportation strategies for campuses using hybrid decision-making approach under picture fuzzy sets," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    6. Chia-Nan Wang & Yu-Chi Chung & Fajar Dwi Wibowo & Thanh-Tuan Dang & Ngoc-Ai-Thy Nguyen, 2023. "Sustainable Last-Mile Delivery Solution Evaluation in the Context of a Developing Country: A Novel OPA–Fuzzy MARCOS Approach," Sustainability, MDPI, vol. 15(17), pages 1-25, August.
    7. Su, Dan & Zhang, Lijun & Peng, Hua & Saeidi, Parvaneh & Tirkolaee, Erfan Babaee, 2023. "Technical challenges of blockchain technology for sustainable manufacturing paradigm in Industry 4.0 era using a fuzzy decision support system," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    8. Marta de la Cuesta-González & Cristina Ruza & José M. Rodríguez-Fernández, 2020. "Rethinking the Income Inequality and Financial Development Nexus. A Study of Nine OECD Countries," Sustainability, MDPI, vol. 12(13), pages 1-18, July.
    9. Gürler, Hasan Emin & Özçalıcı, Mehmet & Pamucar, Dragan, 2024. "Determining criteria weights with genetic algorithms for multi-criteria decision making methods: The case of logistics performance index rankings of European Union countries," Socio-Economic Planning Sciences, Elsevier, vol. 91(C).
    10. Hosseini Dehshiri, Seyyed Jalaladdin & Amiri, Maghsoud, 2023. "Evaluating the risks of the internet of things in renewable energy systems using a hybrid fuzzy decision approach," Energy, Elsevier, vol. 285(C).
    11. Arunodaya Raj Mishra & Pratibha Rani & Dragan Pamucar & Abhijit Saha, 2024. "An integrated Pythagorean fuzzy fairly operator-based MARCOS method for solving the sustainable circular supplier selection problem," Annals of Operations Research, Springer, vol. 342(1), pages 523-564, November.
    12. Fijałkowska Justyna & Sačer Ivana Mamić & Zyznarska-Dworczak Beata & Sandulescu Maria-Silvia & Garsztka Przemysław & Mokošova Daša, 2023. "The Efficiency of Sustainability Engagement Reported by Banks in Poland, Croatia and Romania," Journal of Intercultural Management, Sciendo, vol. 15(1), pages 94-123, March.
    13. Chia-Nan Wang & Ngoc-Ai-Thy Nguyen & Thanh-Tuan Dang, 2023. "Sustainable Evaluation of Major Third-Party Logistics Providers: A Framework of an MCDM-Based Entropy Objective Weighting Method," Mathematics, MDPI, vol. 11(19), pages 1-27, October.
    14. Hosseini Dehshiri, Seyyed Jalaladdin & Amiri, Maghsoud & Hosseini Bamakan, Seyed Mojtaba, 2024. "Evaluating the blockchain technology strategies for reducing renewable energy development risks using a novel integrated decision framework," Energy, Elsevier, vol. 289(C).
    15. Anas A. Makki & Reda M. S. Abdulaal, 2023. "A Hybrid MCDM Approach Based on Fuzzy MEREC-G and Fuzzy RATMI," Mathematics, MDPI, vol. 11(17), pages 1-19, September.
    16. Jameel, Toqeer & Riaz, Muhammad & Aslam, Muhammad & Pamucar, Dragan, 2024. "Sustainable renewable energy systems with entropy based step-wise weight assessment ratio analysis and combined compromise solution," Renewable Energy, Elsevier, vol. 235(C).
    17. Nitasha Hasteer & Rahul Sindhwani & Abhishek Behl & Akul Varshney & Adityansh Sharma, 2024. "Exploring the inhibitors for competitive AI software development through cloud driven transformation," Annals of Operations Research, Springer, vol. 342(1), pages 355-397, November.
    18. José Carlos Romero & Pedro Linares, 2021. "Multiple Criteria Decision-Making as an Operational Conceptualization of Energy Sustainability," Sustainability, MDPI, vol. 13(21), pages 1-14, October.
    19. Zhi Wen & Huchang Liao & Ruxue Ren & Chunguang Bai & Edmundas Kazimieras Zavadskas & Jurgita Antucheviciene & Abdullah Al-Barakati, 2019. "Cold Chain Logistics Management of Medicine with an Integrated Multi-Criteria Decision-Making Method," IJERPH, MDPI, vol. 16(23), pages 1-21, December.
    20. Helena Bulińska-Stangrecka & Anna Bagieńska, 2019. "HR Practices for Supporting Interpersonal Trust and Its Consequences for Team Collaboration and Innovation," Sustainability, MDPI, vol. 11(16), pages 1-18, August.

    More about this item

    Keywords

    Banking industry; Performance assessment; MCDM; F-LBWA; F-LMAW; MARCOS;
    All these keywords.

    JEL classification:

    • G19 - Financial Economics - - General Financial Markets - - - Other
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:fininn:v:11:y:2025:i:1:d:10.1186_s40854-024-00728-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.