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Mathematical Problems in Engineering
Volume 2016, Article ID 6169586, 11 pages
Research Article

Fuzzy Approach in Ranking of Banks according to Financial Performances

1Faculty of Economics, University of Kragujevac, Ðure Pucara Starog 3, 34000 Kragujevac, Serbia
2Faculty of Mechanical Engineering, University of East Sarajevo, Vuka Karadžića 30, 71123 Lukavica, Bosnia and Herzegovina
3Faculty of Engineering, University of Kragujevac, Sestre Janjic 6, 34000 Kragujevac, Serbia
4Faculty of Mechanical Engineering, University of Belgrade, Kraljice Marije 16, 11000 Belgrade, Serbia

Received 16 March 2016; Accepted 16 May 2016

Academic Editor: Kishin Sadarangani

Copyright © 2016 Milena Jakšić et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


Evaluating bank performance on a yearly basis and making comparison among banks in certain time intervals provide an insight into general financial state of banks and their relative position with respect to the environment (creditors, investors, and stakeholders). The aim of this study is to propose a new fuzzy multicriteria model to evaluate banks respecting relative importance of financial performances and their values. The relative importance of each pair of financial performance groups is assessed linguistic expressions which are modeled by triangular fuzzy numbers. Fuzzy Analytic Hierarchical Process (FAHP) is applied to determine relative weights of the financial performances. In order to rank the treated banks, new model based on Fuzzy Technique for Order Performance by Similarity to Ideal Solution (FTOPSIS) is deployed. The proposed model is illustrated by an example giving real life data from 12 banks having 80% share of the Serbian market. In order to verify the proposed FTOPSIS different measures of separation are used. The presented solution enables the ranking of banks, gives an insight of bank’s state to stakeholders, and provides base for successful improvement in a field of strategy quality in bank business.