Comparison of the performance of Turkish banks transacted in Bist: Data envelopment analysis

In this study, it is aimed to evaluate the efficiency changes in the banking sector between the years 2012-2021 of 9 banks traded in Borsa Istanbul. In this context, during the specified years the efficiency of banks and the changes in their productivity levels were analysed using Data Envelopment Analysis and Malmquist Total Factor Productivity Index. Three inputs (total equity, interest expenses and other operating expenses) and two outputs (loans and receivables, interest income) variables were selected by using the input-oriented CCR and BCC methods. With these variables, it is defined whether the banks are efficient or not and how much the input and output variables should be increased or decreased with the target values for inactive banks. In addition, the results of the CCR model under the assumption of constant returns to the input-oriented scale and the results of the BCC model under the assumption of variable returns to the input-oriented scale were compared. Based on the findings obtained as a result of the study, the factors that specified the efficiency and effectiveness of banks are explained and how they can raise their performance is examined. For ineffective banks, suggestions were made to make them more effectual by making the required improvements on the inputs based on the reference clusters. In the last part of the study, Malmquist total factor productivity was examined and it was seen that technological efficiency and scale efficiency had a significant effect on the increase in total factor productivity. In addition, changes in closing prices of banks' annual (last day of December) shares in BIST and changes in MTFVE were calculated. As a result of the comparison, it is seen that the increase or decrease in the efficiency of the banks does not affect the increase or decrease in the prices of their shares in BIST. Keywords: Banking, Efficiency, Productivity, Performance, Data Envelopment Analysis