Višekriterijumski pristup kreiranju kompozitnih indeksa poslovne uspešnosti banaka u Republici Srbiji

Abstract

Impartial measurement and comparison of bank performance, as a set of relatively homogeneous and comparable entities operating in the same legal and economic framework, is possible only by applying appropriate mathematical and statistical methods, and recently the application of multicriteria analysis methods has become more important. The banking sector of the Republic of Serbia has experienced substantial changes in the previous period as a result of a comprehensive reform that regulated the banking system, enabled the entry of foreign capital and created a competitive environment. Bearing in mind that one of the determinants of the competitive position is the level of achieved business success, it is necessary to quantify the achieved business success along with the determination of the success factors so as to improve the banks’ operations. The research conducted in the dissertation aims to compensate for the shortcomings of existing indicators and systems for measuring bank performance by proposing a theoretical and methodological framework for creating a composite index of business performance of banks based on multicriteria analysis methods. Composite indices of business performance of banks, which continuously (with changes in ownership) operated in the Republic of Serbia, were created for the quarterly periods from 2005 to 2020 based on data from the balance sheet and income statement of banks. It was found that the results depend on the chosen weighting scheme and the chosen aggregation scheme, with statistically significant differences between the order of banks based on composite indices obtained by linear aggregation and the order of banks based on composite indices obtained by non-compensatory multicriteria method. objective methods for determining the weight coefficients of the criteria and order of composite indices obtained by applying the approach of equal weight determination. In addition, the determinants of the achieved level of business performance of banks were analysed and it was determined that the size of the bank, type of ownership, market share, bank stability, market concentration, crisis and inflation are significant determinants of overall business performance.