This investigation develops an analytic hierarchy framework to help banks choose development strategies according to six main criteria comprising 41 attributes, namely management performance, staff rights and interests, customer orientation, financial analysis, government policy and risk management. Questionnaires are administered to compare the priorities of different criteria and the ratings of feasible developmental strategies amongst decision makers and respondents including bank superintendents (Department of Finance), economists, shareholders, customers, executives and staff of the Bank of Kaohsiung, Taiwan. Additionally, the analytic hierarchy process and consistent fuzzy preference relation are used to improve consistency and effectiveness in decision making. The analytical results reveal that risk management and customer orientation are the most important considerations for the Bank of Kaohsiung in the development of a strategy selection. Furthermore, the staff select the best futuristic policy on “focusing on core business competitiveness to become a specialized and stable bank,” whereas the other five groups choose the strategy of “merging with other finance organizations to become an existing bank.”
Finance merge Financial holding company Multi-criteria decision making Consistent fuzzy preference relation Analytic hierarchy process (AHP)
This is a preview of subscription content, log in to check access.
Chiclana F, Herrera F, Herrera-Viedma E (2001) Integrating multiplicative preference relations in a multipurpose decision-making model based on fuzzy preference relations. Fuzzy Sets Syst 122(2): 277–291. doi:10.1016/S0165-0114(00)00004-XCrossRefGoogle Scholar
Chiclana F, Herrera-Viedma E, Herrera F, Alonso S (2007) Some induced ordered weighted averaging operators and their use for solving group decision-making problems based on fuzzy preference relations. Eur J Oper Res 182: 383–399. doi:10.1016/j.ejor.2006.08.032CrossRefGoogle Scholar
Thomson JB (1991) Prediction bank failures in the 1980s. Econ Rev 27: 9–20Google Scholar
Wang TC, Chen YH (2005a) Comparing fuzzy preference relations and AHP as for the decision making. In: 2005 The 13th national conference on fuzzy theory and its applications, National Kaohsiung First University of Science and TechnologyGoogle Scholar
Wang TC, Chen YH (2005b) Some issues on the consistency of fuzzy AHP. In: 2005 The 13th national conference on fuzzy theory and its applications, National Kaohsiung First University of Science and TechnologyGoogle Scholar