International Congress on Eurasian Economies

International Conference on Eurasian Economies

1-3 July 2014 – Skopje, MACEDONIA

Paper detail

Paper ID : 1119
Status : Paper published
Language : English
Topic : Finance and Financial Crises
Presenter: Asst. Prof. Dr. Ebru Esendemirli
Session : 3B Finance II

Comparative Analysis of Efficiency Measurement of Banks in the Turkish Banking System
Comparative Analysis of Efficiency Measurement of Banks in the Turkish Banking System

Abstract

The global developments at the beginning of 21st century raised different issues about the banking sector. International banks are being effective since 2001 in emerging markets while U.S. banking sector is dealing with the consequences of the crisis in 2008. Furthermore the flow of funds from developed countries to emerging markets had an increasing trend due to the globalization of the capital markets. Banks have a major role in Turkish financial system. The aim of this study is to measure and compare the efficiency of banks in Turkish banking industry. The first part of the study reports a descriptive summary about the general appearance of the Turkish banking system. The second part of the study discusses the theoretical aspects in measuring the efficiency of banks. In the third part of the study, a non-parametric method, data envelopment analysis is used to analyze the efficiency of foreign banks, private banks and participation banks. As a result the average efficiency score of foreign banks in 2008-2012 is slightly higher than the average efficiency of participation banks. Although there isn’t a very large difference, foreign banks and participation banks are more efficient than private banks.

JEL codes: E44, G21

Esendemirli, Ebru, Yeğinboy, Emine Yasemin (2014). "Comparative Analysis of Efficiency Measurement of Banks in the Turkish Banking System" in Proceedings of International Conference of Eurasian Economies 2014, pp.309-316, Skopje, MACEDONIA.

DOI: https://doi.org/10.36880/C05.01119

Full paper in PDF format.

Session 3B: Finance II

Istanbul Beykent University Ss. Cyril and Methodius University Kyrgyz-Turkish Manas University TIKA Turkish Central Bank