Multicriteria Evaluating the Financial Resilience of Iranian Commercial Banks: A Neutrosophic-SWARA-MULTIMOORA Approach

The financial resilience of commercial banks during the COVID-19 crisis is paramount for sustaining financing to the real economy and preserving financial stability amidst unprecedented challenges. This study evaluates the financial resilience of Iranian commercial banks using a multi-criteria decision-making (MCDM) approach. We employ the stepwise weight assessment ratio analysis (SWARA) approach in a neutrosophic setting to determine the weights of criteria influencing financial resilience, integrating a variety of expert opinions. This is followed by the ranking of selected commercial banks using the multi-objective optimization on the basis of a ratio analysis plus the full multiplicative form (MULTIMOORA) approach for a comprehensive evaluation. The sample comprises nine banks listed on the Tehran Stock Exchange (TSE), assessed across seven key criteria: debt structure, capital adequacy structure, leverage ratio, asset structure, and profitability. The findings reveal Pasargad bank as the most resilient, while Day bank emerges as the least resilient during the COVID-19 crisis. These findings underscore which banks with lower capital adequacy ratios, and profitability are particularly susceptible to the pandemic's impacts. Furthermore, this study underlines the critical need for bank management to prioritize strengthening base capital to enhance financial resilience. Implementing these strategic measures will be crucial for commercial banks to navigate the challenges posed by the COVID-19 pandemic effectively.