Global Crisis and its Effect on Turkish Banking Sector: A Study with Data Envelopment Analysis

OpenAlex · English

The purpose of study is to examine the effects of Global Crisis on public, private and foreign–capitalized total 19 commercial banks in the Turkish Banking Sector's performance criteria during the course of 2004–2012. With this purpose, to investigate the productivity and activity measurements Data Envelopment Analysis (DEA)–Variable Returns to Scale Model and DEA–Malmquist Total Factor Productivity Index appropriate to time series panel estimation structure were applied to by using ratio belongs to sector. According to findings obtained to DEA–Variable Returns to Scale Model, the effectiveness of banking sector shows an increasing trend within the period 2006–2009 after a one year decrease (2005), and moves a decreased structure in period 2010–2012. When sector is classified according to capital structure, it is seen public–capitalized bank groups were affected crisis. It is among the findings obtained that foreign-capitalized banks have worked significantly more efficient way, effectiveness degree of private-capitalized banks have been the course of decrease especially during the years 2010–2012. Findings obtained to DEA–Malmquist Total Factor Productivity generally followed the same trend throughout the years. The average TFP components are found the highest in influence the capture of innovation in sector. Relatively small proportion of unproductiveness decrease is discovered decision-making unit converges to the best production limit and showed activities at appropriate scales; while productivity increase performance positive change and managerial effectiveness. When Data Envelopment Analysis Model and the DEA–Malmquist Total Factor Productivity findings are considered together, Crisis doesn’t indicate an important inefficiency source on Turkish Banking Sector.