Evaluation of Performance of Lithuanian Commercial Banks by Multi-Objective Optimization

The aim of this study is to rank the banks registered in Lithuania by Multi-Objective Optimization (MOO). As these banks work in the same macro-economic environment the objectives are chosen on basis of the CAMEL classification (‘C’ Capital adequacy, ‘A’ Asset quality, ‘M’ Management quality, ‘E’ Earnings, ‘L’ Liquidity). Traditional Cost-Benefit does not respond to these purposes, translating all direct and indirect costs and benefits into...