Journal of Finance and Bank Management

Scrutinizing Efficiencies of Participation Banks: Turkey Sample 2005-2013
Assistant Professor Dr. Pınar Pehlivan

Abstract
Today, efficient operation of the banking sector that support the growth and development of the countries has significance in terms of optimal using of resources. In our country, efficiency and productivity has become more important in the restructuring of the banking sector, especially after the Turkish banking crisis in November 2000 and February 2001. An important part of the banking sector is participation banks that apply interest-free banking. This institutions working in the private financial institutions previously have been converted into participation banks after the law numbered 5411 was invoked. While, there are a lot of studies about efficiency and productivity for the deposit banks and development and investment banks, not many studies examining participant banks effectiveness. Several kinds of methods are used in measuring efficiency of banks. Data Envelopment Analysis (DEA), that uses several input and output is a very suitable method to measure efficiency in banking sector. Besides, offering set of references leading to managers on efficiency and productivity of inefficient banks, it is one of the most important specialities of DEA method. The aim of this study is to measure efficiencies of participation banks in Turkish banking sector by using DEA for 2005-2013 period. In this study, it is concluded that all of the participation banks are efficective in 2005-2008 and 2012, but not effective in 2009-2011and 2013.

Full Text: PDF     DOI: 10.15640/jfbm.v3n1a5