Multicriterial ranking approach for evaluating bank branch performance

14 ranking methods based on multiple criteria are suggested for evaluating the performance of the bank branches. The methods are explained via an illustrative example, and some of them are applied to a real-life data for 23 retail bank branches in a large-scale private Turkish commercial bank

A Credit scoring approach for commercial banking sector. Soc Econ Plan Sci 37

Abstract For managing credit risk, commercial banks use various scoring methodologies to evaluate the financial performance of client firms. This paper upgrades the quantitative analysis used in the financial performance modules of state-of-the-art credit scoring methodologies. This innovation should help lending officers in branch levels filter out the poor risk applicants. The Data Envelopment Analysis-based methodology was applied to current data for 82 industrial/manufacturing firms comprising the credit portfolio of one of Turkey's largest commercial banks. Using financial ratios, the DEA synthesizes a firm's overall performance into a single financial efficiency score-the ''credibility score''. Results were validated by various supporting (regression and discriminant) analyses and, most importantly, by expert judgments based on data or on current knowledge of the firms.