The Efficiency of Participation and Conventional Banking in Turkiye: A Stochastic Frontier Approach

Year 2024, Volume: 5 Issue: 1, 56 - 79, 15.02.2024

Çağlar Hamarat

https://doi.org/10.58702/teyd.1341253

Cited By: 1

Abstract

The efficiency of conventional and participation banks in Türkiye between 2011 and 2016 is examined in this research using stochastic frontier analysis (SFA). The primary goals of this research are the analysis of the Turkish banking system's cost-effectiveness, a comparison of the efficacy of conventional and participation banks. The empirical research was based on a sample that included panel data for three participation banks and 23 commercial banks that had been in operation continuously. The one-step approach permits control of firm- and country-specific variables as well as Shariah-compliant banking directly in the estimated frontier, allowing any differences in technology and output that are caused by differences in the two banking systems' operational characteristics. According to the SFA statistics, participation banks are less efficient than regular banks overall. According to the findings, inflation and interest rates are statistically significant for the chosen external factors and negatively affect Turkish banks' cost-effectiveness, particularly between 2012 and 2014.

Keywords

Banking, technical efficiency, stochastic frontier analysis, panel data

Türkiye'de İslami ve Geleneksel Bankacılığın Etkinliği: Stokastik Sınır Yaklaşımı

Abstract

Bu araştırmada 2011-2016 yılları arasında Türkiye'deki konvansiyonel ve katılım bankaların etkinliği stokastik sınır analizi (SFA) kullanılarak incelenmiştir. Bu araştırmanın temel amacı, Türk bankacılık sisteminin maliyet etkinliğinin analizi, konvansiyonel ve katılım bankaların etkinliğinin karşılaştırılmasıdır. Ampirik araştırma, sürekli faaliyette olan üç katılım bankası ve 23 ticari banka için panel verileri içeren bir örneğe dayanmaktadır. Tek adımlı yaklaşım, iki bankacılık sisteminin operasyonel özelliklerindeki farklılıklardan kaynaklanan teknoloji ve çıktı farklılıklarına izin vererek, tahmin edilen sınırda doğrudan Şer'i uyumlu bankacılığın yanı sıra bankaya ve ülkeye özgü değişkenlerin kontrolüne izin vermektedir. SFA analiz sonuçlarına göre, katılım bankaları genel olarak normal bankalardan daha az verimlidir. Bulgulara göre, enflasyon ve faiz oranları seçilen dış faktörler için istatistiksel olarak anlamlıdır ve özellikle 2012-2014 yılları arasında Türk bankalarının maliyet etkinliğini olumsuz etkilemektedir.

Keywords

Bankacılık, Teknik etkinlik, stokastik sınır analizi, panel veri

Supporting Institution

Türkiye Milli Eğitim Bakanlığı (Ministry of National Education of Türkiye)

Thanks

Prof. Dr. Ümit Güner, Prof. Dr. Yasemin Deniz Koç ve Doç. Dr. Özer Özçelik

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