Title: Credit rating ranking of Iranian banks based on CAMELS and hybrid multi-criteria decision analysis methods in uncertain environments

Authors: Amir Karbassi Yazdi; Precious Okereke; Peter Fernandes Wanke; Seyed Arash Shahr Aeini; Amir Mehdiabadi

Addresses: Young Researchers and Elite Club, South Tehran Branch, Islamic Azad University, Tehran, Iran ' School of Management Sciences, University of Port Harcourt, Port Harcourt, Nigeria ' Business Analytics and Economics Research Unit, The Graduate School of Business Administration, Federal University of Rio de Janeiro, Rio de Janeiro, Brazil ' Department of Statistics, Islamic Azad University, North Tehran Branch Tehran, Iran ' Department of Management, South Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract: This research aims to rank Iranian banks by CAMELS and multi-criteria decision analysis (MCDA) methods in uncertain environments. Ranking banks can lead to a better understanding of how customers select them and use their services. Since there is close competition between private and government banks in Iran, the most popular rating system (CAMELS) can help customers gain a better understanding of their situation. The CAMELS method consists of a rating based on bank performance factors. For finding the best bank in Iran once the CAMELS factors are considered, banks are then ranked by the COmbined COmpromise SOlution (CoCoSo) method, which also requires the stepwise weight assessment ratio analysis (SWARA) method to be used. The environment, however, is changing, thus affecting decision makers (DMs), so using uncertainty methods such as Pythagorean fuzzy numbers (PFN) is essential, which helps DMs make better decisions. The sample population of this research is eight public banks in Iran. The result indicates the best bank based on CAMELS and MCDA methods in uncertain environments with the result also pointing out how banks with a lower performance can do benchmarking to improve their performances according to CAMELS factors.

Keywords: CoCoSo method; SWARA; CAMELS method; bank credit rating; Pythagorean fuzzy numbers; PFN.

DOI: 10.1504/IJOR.2024.137132

International Journal of Operational Research, 2024 Vol.49 No.3, pp.358 - 384

Received: 20 Apr 2021
Accepted: 15 Jun 2021
Published online: 04 Mar 2024 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article