The Determination of Deposit and Participation Banks’ Efficiency by Data Envelopment Analysis: A Research on Banks in Turkey

Alper Veli ÇAM

Abstract


Abstract. The determination of productivity and efficiency of firms directs strategic decisions in the eye of decision makers. The importance of productivity and efficiency measurement in banking sector which especially attracts foreign investors in Turkey increases gradually. In this context, efficiency measurement of 15 banks operating in Turkey has been done by using their data. Data Envelopment Analysis (DEA) technique which is used as a decision making tool in multiple input multiple output processes and is not parametric is used. In the method, number of staff, total assets and capital are used as input units and general deposit, total credits and net profit are used as output units. In the results, the efficiency of banks in 2013-2014 has been measured and efficiency difference between private capital deposit banks and participation banks has been examined.

Keywords. Data envelopment analysis, Banking, Financial management, Stock returns

Jel. G21, C89, M29


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DOI: http://dx.doi.org/10.1453/ter.v2i3.440

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