Objective

In the current era, the increasing complexity of banking operations and the pivotal role of this industry in macroeconomic stability and dynamism have intensified the need for accurate assessment and measurement of bank performance within today’s competitive environment. The primary objective of this study is to rank the performance of the nation's banks based on a set of key performance indicators using the novel Ordinal Priority Approach (OPA) multi-criteria decision-making (MCDM) method, while also aiming to determine the most significant criteria impacting bank performance.

Methods

Initially, following a comprehensive literature review and expert consultation, key bank performance determinants, along with the main CAMELS-based indicators and criteria, were extracted and categorized from credible sources. While the statistical population comprised all active banks in the national banking system, the specific focus was concentrated on those actively participating in the capital market. For model implementation, financial data spanning 2019–2023 and responses from expert questionnaires were utilized. Subsequently, the OPA was implemented to determine criterion weights and perform the final bank ranking.



Results

The research findings indicate that Middle East Bank, Karafarin Bank, and Resalat Bank were identified as the top-performing banks, whereas Sarmayeh Bank was ranked last, exhibiting the weakest performance among the sample. Furthermore, among the evaluation criteria, Capital Adequacy and the Non-Performing Loan (NPL) Ratio held the most significant importance in determining bank performance. Finally, a Spearman's rank correlation analysis between the results of the OPA method and the other Multi-Criteria Decision Making (MCDM) models confirmed the consistency and validity of the obtained rankings.



Conclusion

The empirical findings underscore the critical importance of maintaining continuous and rigorous attention to qualitative criteria, alongside the efficient stewardship of both Capital Adequacy Ratio metrics and asset structure. Consequently, the proposed OPA model can be effectively adopted as a benchmark for periodic evaluations conducted by supervisory authorities and internal bank management. Its application will ultimately serve to refine existing strategies, significantly bolster operational efficiency across the national banking industry, and facilitate more insightful and strategic decision-making.