Dynamic Efficiency of Turkish Banks: a DEA Window and Malmquist Index Analysis for the Period of 2003-2012

Year 2015, Volume: 23 Issue: 24, 71 - 97, 21.04.2015

Aziz Kutlar Ali Kabasakal Adem Babacan

https://doi.org/10.17233/se.09289

Cited By: 4

Abstract

This article utilizes data envelopment analysis (DEA) in order to obtain technical efficiency and allocative efficiency scores of 23 commercial banks which operate in Turkey uninterruptedly between 2003 and 2012. According to results of CCR model analysis 3 banks are not technically efficient in the first years, the number of technically inefficient banks doubles in 2012. On the other hand the number of allocatively inefficient banks is only 5 in the first year and the number declines to 4 in the last year. The number of technically inefficient banks in the beginning is only one in terms of BCC model yet the number rose to 4 at the end of the study period. The relevant figure for allocative efficiency is 10 in the beginning and 16 at the end. DEA window analysis indicates that public banks with high amount of deposits tend to have higher efficiency scores while private banks have lower efficiency scores. The highest average in efficiency scores for all the banks occur in win4 to win5 (2006-’09 to 2007-’10) period. The Malmquist Index is used to analyze total factor productivity and its increase merely by two thousandth (0,002) for all the enterprises.

Keywords

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