Akademik Veri Yönetim Sistemi
Investment Management and Financial Innovations, cilt.11, sa.2, ss.111-122, 2014 (Scopus)
Measuring the financial efficiencies and performances of the banking sector has played a crucial role in quantitative finance. Turkish banking sector, achieved TL 1,732 billion asset size as of December 2013, has a promising role in the emerging markets within the global economy. Charnes, Cooper and Rhodes (1978) had first introduced Data Envelopment Analysis (DEA), a valuable non-parametric and deterministic mathematical programing methodology for determining the efficient frontier that depends on the selected input and output variables of the DMUs. The principle form of DEA is CCR model, depends upon the constant returns to scale assumption, and measures the technical efficiency. The goal of this study is to analyze technical financial efficiencies and performances of 30 commercial and 13 development and investment banks for Turkey in 2012-2013. It has been observed that Turkish banks demonstrated better financial efficiencies in terms of intermediation approach rather than operating approach. In particular, commercial banks have shown higher technical financial efficiencies in comparison to development and investment banks. According to the results, Turkish banks require some improvements in input and output variables. As a consequent, both DEA analyses and selected bank performance indicators have revealed that Turkish banks have demonstrated significant financial technical efficiencies and bank performances for 2012-2013. In further, the DEA technique is regarded as a valuable quantitative tool for financial decision makers in analyzing the financial efficiencies of the banks. © Fazil Gokgoz, 2014.