Classification of the Banks in Turkey According to their Financial Performances Using Linear Discriminant Analysis, SIMCA and PLS Discriminant Analysis

POLAT E., TÜRKAN S., Guenay S.

6th International Conference on Partial Least Squares and Related Methods, Beijing, Çin, 4 - 07 Eylül 2009, ss.156-163 identifier

  • Yayın Türü: Bildiri / Tam Metin Bildiri
  • Cilt numarası:
  • Basıldığı Şehir: Beijing
  • Basıldığı Ülke: Çin
  • Sayfa Sayıları: ss.156-163
  • Hacettepe Üniversitesi Adresli: Evet

Özet

In this study, the banks in Turkey have been classified into two groups called as "low" and "high" in terms of capital adequacy ratio by using Linear Discriminant Analysis, SIMCA and PLS-Discriminant Analysis. The ability of these classification methods in classifying the banks correctly to their pre-defined classes have been compared. The pros and cons of the approaches used in this study have been discussed. In addition, the most important financial ratios to classify the banks have been determined for each method.