Application of Process Hierarchy Analysis on the Internal Rating Credit Line Model for Islamic Banks
DOI:
https://doi.org/10.15575/ks.v2i2.8890Keywords:
Credit Line, Hierarchy Analysis Process, Islamic BankAbstract
Banks in carrying out their business activities are always in contact with risk. Therefore, an internal rating system is needed so that the bank can select debtors and counterparts based on the level of risk. One of the bank's activities is the provision of credit lines for Islamic Bank in Indonesia. This study intends to formulate a credit line ranking model for Islamic Banks. This research uses quantitative methods using the Hierarchy Analysis Process method. An important finding of this study is the acquisition of an internal credit line rating model for Islamic Banks which can then be used to assist banks in determining the eligibility of an Islamic Bank to become a bank partner based on the level of risk.
References
Akkoc, S., & Vatansever, K. (2013). Fuzzy performance evaluation with AHP and Topsis methods: evidence from turkish banking sector after the global financial crisis. Eurasian Journal of Business and Economics, 6(11), 53–74.
Brunelli, M. (2014). Introduction to the analytic hierarchy process. Springer.
Bulajic, M., Knezevic, S., Jeremic, V., & Zarkic Joksimovic, N. (2012). Towards a framework for evaluating bank efficiency. International Journal of Agricultural and Statistical Sciences, 8(2), 377–384.
Chen, Y.-C., Chiu, Y.-H., Huang, C.-W., & Tu, C. H. (2013). The analysis of bank business performance and market risk—Applying Fuzzy DEA. Economic Modelling, 32, 225–232.
Ghozali, M., Azmi, M. U., & Nugroho, W. (2019). Perkembangan Bank Syariah Di Asia Tenggara: Sebuah Kajian Historis. Falah: Jurnal Ekonomi Syariah, 4(1), 44–55.
Hadi-Vencheh, A., & Mohamadghasemi, A. (2011). A fuzzy AHP-DEA approach for multiple criteria ABC inventory classification. Expert Systems with Applications, 38(4), 3346–3352.
Ishizaka, A., & Nguyen, N. H. (2013). Calibrated fuzzy AHP for current bank account selection. Expert Systems with Applications, 40(9), 3775–3783.
Khosroanjom, D., Ahmadzade, M., Niknafs, A., & Mavi, R. K. (2011). Using fuzzy AHP for evaluating the dimensions of data quality. International Journal of Business Information Systems, 8(3), 269–285.
Mandic, K., Delibasic, B., Knezevic, S., & Benkovic, S. (2014). Analysis of the financial parameters of Serbian banks through the application of the fuzzy AHP and TOPSIS methods. Economic Modelling, 43, 30–37.
Özbek, A. (2015). Efficiency analysis of foreign-capital banks in Turkey by OCRA and MOORA. Research Journal of Finance and Accounting, 6(13), 21–30.
Paksoy, T., Pehlivan, N. Y., & Kahraman, C. (2012). Organizational strategy development in distribution channel management using fuzzy AHP and hierarchical fuzzy TOPSIS. Expert Systems with Applications, 39(3), 2822–2841.
Rezaei, M., & Ketabi, S. (2016). Ranking the banks through performance evaluation by integrating fuzzy AHP and TOPSIS methods: A study of Iranian private banks. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(3), 19–30.
Seçme, N. Y., Bayrakdaroğlu, A., & Kahraman, C. (2009). Fuzzy performance evaluation in Turkish banking sector using analytic hierarchy process and TOPSIS. Expert Systems with Applications, 36(9), 11699–11709.
Suyandi, D. (2019). The Effect Of Mudharabah Financing Productivity And Increasing The Member’s Capital Business On The Income Of Mardhotilah BMT Members. International Journal of Islamic Khazanah, 9(1), 23–28.
Ta, H. P., & Har, K. Y. (2000). A study of bank selection decisions in Singapore using the analytical hierarchy process. International Journal of Bank Marketing.
Tadic, D., Gumus, A. T., Arsovski, S., Aleksic, A., & Stefanovic, M. (2013). An evaluation of quality goals by using fuzzy AHP and fuzzy TOPSIS methodology. Journal of Intelligent & Fuzzy Systems, 25(3), 547–556.
Downloads
Additional Files
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).