Performance evaluation of banks in Malaysia using integrated Entropy-Fuzzy VIKOR model

Evaluating bank performance is vital for maintaining economic stability and identifying institutional capabilities. This study introduces an integrated approach combining the entropy method and fuzzy VIKOR to assess nine major Malaysian banks over a five-year period using profitability and liquidity ratios obtained from Refinitiv DataStream. By utilizing the entropy method to objectively assign criteria weights based on data variation and fuzzy VIKOR to accommodate data imprecision while ranking performance, the methodology effectively evaluates institutional success. The empirical findings reveal significant performance disparities among the evaluated banks, offering valuable strategic insights for investors regulators and banking executives to support informed decision making and enhance industry development.