Abstract:

The aim of this study is to analyze the effectiveness and efficiency of commercial banks operating in Turkey. In accordance with this objective, the effectiveness and efficiency of 23 commercial banks obtained to the uninterrupted data of 2005-2019 years operating in Turkey is examined by data coverage and Malmquist Total Factor Efficiency Analysis. In the analysis, the number of branches, the number of staff, the non-percentage and the interest expenditure were used as income while the non-percentage and the interest income were used as outcome. In general, the outcomes of the activity are more efficient than the other banking groups. High-level banks are usually low-asset banks, but they use the determined income more effectively and obtain more efficient outcomes than other banks. As a result of the 2008 crisis, the activity rate has decreased. Compared to 2018, the results of 2019 showed an increase in the activities of approximately 61 per cent of the analysed banks (23 of 14 banks). There has also been no decline in technological activity in any bank group. In technological events, public capital banks remain back-planed compared to foreign capital and private capital banks. According to the variation in the overall factor efficiency, there is no decline from the banks examined in the analysis. The high-progressed banking group belongs to foreign capital deposits banks.

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Abstract:

The aim of this study is to analyze the efficiency and productivity of commercial banks operating in Turkey. For this purpose, the efficiency and productivity of 23 commercial banks operating in Turkey, whose continuous data of the years 2005-2018 were reached, have been analyzed through DEA and Malmquist Total Factor Productivity Analysis. In the analysis, the number of branches, number of personnel, non-interest and interest expenses were used as input, while non-interest and interest income were used as output. Looking at the efficiency results in general, banks with foreign capital are more effective than other bank groups. The banks with the highest level of efficiency from foreign banks are banks with low asset size, but they are the ones that use the specified inputs more efficiently and obtain more efficient output compared to other banks. As a result of the 2008 crisis, there has been a decrease in efficiency rates as a sector. Considering the results of 2019 compared to 2018, approximately 61% of the banks included in the analysis (14 out of 23 banks) increased their activities.. Moreover, there was no decline in technological efficiency in any bank group. In technological efficiency, public capital banks are in the background compared to foreign capital and private capital banks. According to the Change in Total Factor productivity, no decline is observed from the banks analyzed in the analysis. The highest progress per bank group belongs to Foreign Capital Deposit Banks