Evaluating Banks’ Efficiency Using Data Envelopment Analysis: A Comparative Research on Public, Domestic Private and Foreign Banks in Turkey Cover Image

Bankalarda Etkinliğin Veri Zarflama Analizi ile Değerlendirilmesi: Türkiye’deki Kamu, Özel ve Yabancı Sermayeli Bankalar Üzerine Karşılaştırmalı Bir Araştırma
Evaluating Banks’ Efficiency Using Data Envelopment Analysis: A Comparative Research on Public, Domestic Private and Foreign Banks in Turkey

Author(s): Mehmet Sabri Topak, Yavuz Alacaatlı
Subject(s): Business Economy / Management, Financial Markets, Accounting - Business Administration
Published by: İşletme Araştırmaları Dergisi
Keywords: Efficiency; Banks; Data Envelopment Analysis; Turkey;

Summary/Abstract: Purpose – To investigate the efficiency of deposit banks in Turkey and to compare their efficiency in terms of capital ownership. Design/methodology/approach – Data Envelopment Analysis method was applied in the research. Interest Expenses, Other Operating Expenses and Shareholders’Equity were selected as input variables while Interest Income and Fees and Commissions Income were used as outputs. The study consists of 12 deposit banks, including three state-owned, five privately-owned and four foreign-owned banks and it covers the 2010 - 2017 period. Findings – The average efficiency value of banks for the 2010-2017 operating period is 0.983. Average efficiency value is 0,987 in state-owned banks; 0.970 in private banks; 0.997 in foreign banks. The banks have on average 75 % operating efficiency in the periods covered by the study. This ratio is 84 % in foreign banks, 79 % in state-owned banks and 65 % in private banks. Discussion – The average efficiency value of the private banks group and the ratio of the number of periods in which operating effectiveness in the total number of periods is relatively lower than state-owned banks and foreign banks. This is caused by the fact that Türkiye İş Bankası A.Ş. has low efficiency value and is technically ineffective in all periods covered in the study. When Türkiye İş Bankası A.Ş is excluded from the analysis no significant findings were reached that can lead to a difference in the efficiency of Turkish deposit banks in terms of ownership structure.

  • Issue Year: 12/2020
  • Issue No: 4
  • Page Range: 4340-4350
  • Page Count: 11
  • Language: Turkish