Using Fuzzy Analytic Hierarchy Process and Balanced Scorecard for Commercial Bank Performance Assessment

Rapid growth in financial markets, increasing volatility and globalization are the main reasons of growing competition among commercial banks. And commercial bank performance is very importance for society and economy of country. So bank regulatory commission must find and help the commercial bank which is in trouble by evaluate their performance. Conventional evaluation models for commercial bank performance are generally tended to use some financial date such as ROA, ROE etc. However those indicators are not enough to evaluate the commercial bank performance as a whole and canpsilat give the advice to solve problem. Balanced scorecard can be used to overcome this problem by integrating all aspects of the commercial banks. At the same time, ranking the bank performance is very complex and uncertain. Besides some aspects of balanced scorecard can only be described in vague languages for most of the times by experts. So fuzzy analytic hierarchy process and balanced scorecard are applied to help bank regulatory commission to rank the commercial bank performance in this paper.