The Application of Fuzzy Evaluating Approach on Banking Operating Performance in Taiwan: An Empirical Study

This article aims at the empirical study of fuzzy evaluating approach applied for banking operating performance in Taiwan. According to the available literature, evaluations of bank operating performance are commonly obtained through questionnaires with sampling, processed by statistical analysis methods. However, the vagueness of linguistic terms used by decision maker, such as important etc., is not considered when assessment of relative weight results. Therefore, In order to obtain more precise aggregate evaluation results, a fuzzy evaluating approach is proposed, in which the linguistic terms are replaced by fuzzy numbers, followed by a computational process. The proposed approach is more effective than the traditional statistical methods and will increase the applicability of banks´ performance evaluation in practice. An empirical study is conducted to demonstrate the advantages of the fuzzy evaluating approach over the statistical methods.