Performance evaluation at banks and an application

Efficiency and productivity are the leading concepts of today?s banking management. Although these concepts are important, when various problem areas for evaluating administrative process are envisaged, it is seen that lack of dependable and valid evaluation techniques which are used standartly, makes difficult to realize the performace evaluation. Financial crisis, which were realized at early 2000?s, brought ?achieving and measuring profitability, efficiency and productivity? in the foreground at financial system in Turkey. Our study includes performance evaluation in which these three factors ? profitability, efficiency and productivity ? takes place. Bank performance evaluation is more important for public authority since it provides supervision and control over the banks? performance and also enables lots of possibilities to the bank?s management for making backterm evaluations, taking decisions, doing local and central supervisions. Generally, perfomance can be discussed in two ways at firms. One is performance of human resources, the other is financial performance. That is more comprehensive in which whole firm?s performance can be followed and the most of analysis? input is provided with the financial statements. n this study, financial performace of banks? will be tried to deliberate on . VII Various methods are carried out for evaluating the performance of banks. One of them is ratio analysis which is a very classical approach and mostly used at measuring firm?s performance. In addition, parametric approach in which statistical methods are used and non-parametric approach which is carried out by using mathematical programming are the other approaches used for analyzing bank?s financial performance. Accept these three approaches, there is an approach which provides a possibility to analyze both sector and performance of each bank by using mostly ratio analysis and statistical and mathematical approaches. In this study; a model, called CAMELS approach had been deliberated on. CAMELS approach had been used at performance evaluation of public banks? in sector by the period of 2002 ? 2006.