Comparative Financial Performance of Participation Banks in Türkiye and Islamic Banks in GCC Countries: Evidence from the MULTIMOORA Method
DOI:
https://doi.org/10.68656/t6n6rb08Keywords:
Islamic and Participation Banks, Financial Performance, MULTIMOORAAbstract
Purpose: This study compares the financial performance of participation banks in Türkiye and Islamic banks operating in the Gulf Cooperation Council (GCC) countries during the COVID-19 period.
Methodology: Financial performance is evaluated using nine financial ratios representing capital adequacy, leverage, asset quality, liquidity, and profitability. The MULTIMOORA method, including the Ratio System, Reference Point Approach, Full Multiplicative Form, and Dominance Theory, is employed to obtain comprehensive performance rankings.
Findings: The findings indicate that the different components of the MULTIMOORA method produce varying rankings, highlighting the multidimensional nature of financial performance evaluation. The results show that several GCC Islamic banks outperform their Turkish counterparts in overall financial performance, although Turkish participation banks perform competitively under specific evaluation approaches.
Scope and Limitations: The sample and scope of the study are limited to six participation banks in Türkiye and seventeen full-fledged Islamic banks in GCC countries specifically during the COVID-19 period.
Originality / Value: The study contributes to the Islamic banking literature by comparing participation banks in Türkiye with GCC Islamic banks. It also demonstrates the usefulness of the MULTIMOORA method for evaluating multidimensional financial performance.
JEL Codes:
C44, G21, M41References
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Data Availability Statement
The data used in this study were obtained from the publicly available annual reports and audited financial statements of the banks included in the analysis. These data are available on the respective banks' official websites.
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Copyright (c) 2026 Sherwan Younis Othman & Mihriban Coşkun Arslan
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