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EFFICIENCY ANALYSIS OF THE TURKISH BANKING SECTOR IN PRECRISIS AND CRISIS PERIOD: A DEA APPROACH
Author(s) -
OZKANGUNAY E. NUR,
TEKTAS ARZU
Publication year - 2006
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1093/cep/byj028
Subject(s) - inefficiency , turkish , data envelopment analysis , commercial bank , consistency (knowledge bases) , business , financial system , economics , non performing loan , finance , industrial organization , computer science , microeconomics , statistics , linguistics , philosophy , mathematics , loan , artificial intelligence
Structural weaknesses and recent crises increased the fragility of the Turkish banking system. Consequently, 25% of the domestic commercial banks were taken by SDIF between 1997 and 2001. This study assesses the technical efficiency of nonpublic commercial banks between 1990 and 2001 following the DEA model. The study reports a declining trend in the number of efficient banks and the mean efficiency of bank subgroups. It analyzes sensitivity to the output variables and depicts consistency between the model proposals and supervisory agent decisions. Thus the DEA model can be a tool to detect and improve the sources of inefficiency by bank management and supervisory agents. (JEL G15, G21, G28)