Application of AHP- TOPSIS method in quality assessment commercial banking

Abstract

Commercial banks play a pivotal role as financial intermediaries, contributing significantly to national economic development. In the face of increasingly fierce competition in the banking sector, evaluating operational performance has become essential to enhance service quality and improve competitive capacity. This study applies an integrated AHP- TOPSIS model to evaluate and rank five major commercial banks in Vietnam- namely, Vietcombank, VietinBank, BIDV, Techcombank, and MB Bank (coded as A1 to A5)- based on five key criteria: capital adequacy, asset quality, profitability and earning capacity, liquidity, and interest rate sensitivity. Expert data collected between June and October 2024 was standardized and processed through the model to ensure objectivity in the evaluation. The results indicate that Techcombank (A4) demonstrates the highest operational efficiency, while other banks show notable variations across the selected criteria. The application of the AHP- TOPSIS model reduces subjectivity in assessment and provides a systematic quantitative tool to support decision-making. The integration of AHP and TOPSIS in evaluating the performance of Vietnamese commercial banks