Comparison of the efficiency of state owned and private owned banks: A study on Turkish banking sector

It is of great importance that banks use their resources effectively which one of the most basic forming blocks of the country's economy. The purpose of this research is to examine the activities of state owned banks and private banks by comparing them. For this purpose, firstly the literature review was done and then the research model created. In the study, Data Envelopment Analysis was applied by using DEAP 2.1 software. A total of 12 banks were included in the research model which composed of 3 public banks, 5 private banks and 4 foreign banks. Subsequently, a study was carried out on which income items to be selected as input and output from the income statement. As a result of this, "equity", "interest expenses", "Other Operating Expenses" items selected as input and "Interest income", "Fees and Commissions Received" items selected as output. In consequence of the analyzes, it is seen that there is no obvious change between private and public banks in terms of effectiveness. Therefore, it is concluded that capital ownership has no direct effect on the effectiveness.