Abstract:

In this study, it is aimed to measure and compare the financial efficiencies of Islamic banks/participation banks operating in Turkey and the member countries of the Gulf Cooperation Council (GCC) between the years 2016-2019. In this context, the financial data of the banks were obtained from the website of the Participation Banks Association for Turkey, and the data for other countries were obtained from the balance sheets and income statements of the banks. While financial efficiencies of 27 banks from seven countries in the data set, data envelopment analysis was performed with the Frontier Analyst program. According to the results of the efficiency analysis, it was found that Ziraat Katılım and Kuveyt Türk participation banks in Turkey are operating at full efficiency without missing a year compared to other countries, Turkey was found to be fully efficient in terms of technical efficiency score only in 2016. On the other hand, participation banks in Bahrain, Kuwait, Oman, United Arab Emirates and Saudi Arabia were found to be fully efficient in terms of technical efficiency without missing a year. In terms of scale effectiveness and total effectiveness scores, it was seen that no country was fully efficient.

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