Measuring bank operations performance: an approach based on Grey Relation Analysis

The aim of this paper is to use a new approach of performance evaluation, Grey Relation Analysis (GRA), which is a concept borrowed from the study of industry and increasingly applied to commerce. GRA is used to evaluate the relative performance of three investment Taiwanese trust firms, which have been reorganized into banks. The result of the study indicates that although the sample size is small and the distribution of data is unknown, GRA can still be successfully used in evaluating bank performance. In addition, this paper compares the GRA results with the Financial Statement Analysis (FSA) and shows that the same result can be obtained.