Abstract:

Banking sector has a key role as a converter which transforming savings to investments for financing real sector. Because of its key role for overall economic system, it is important to measure the performance of banking sector. Public banks are increasing their share in participation banking sector, therefore it is clear that the share of participation banks in Turkish Banking System will increase consistently. Measuring the competitive power of the participation banks against deposit banks is important to determine economic policies for banking sector.In this respect, the main aim of the study is to compare the competitive powers of participation banks both between each other and between other deposit banks. In the study, 19 deposit banks and 3 participation banks are analyzed for the years between 2010-2016 by using data envelopment analysis and Malmquist total factor productivity index. Consequently, it is found that there is inefficiency for all banks. Additionally, participation banks lost their competitive power against deposit banks because of technological decline

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