The participation banking applications evaluation in Turkey according to performance analysis

The effective and productive working has got great importance in the banking sector which has got a critical importance in economies. Global crises which have been seen in economies in recent years have reduced the confidence in banks which perform an operation in interest. It has led people to different bank alternatives that investors who don't want to operate in interest want to include their idle resources after they take the action. The participation banks were established with the name 'Private Finance Institutions in our country as an alternative to the deposit banks in 1983. The participation banks which have developed in Turkey by the years have grown at 17% in the last decade. The size of participation banks' assets has reached to the levels at 6%. It was tried to be determined on the study whether the resources of participation banks which have become an important factor of banking sector have been used effectively and efficiently. In this sense, the effective performance between participation banks and commercial banks which work in interest in Turkey in 2011-2015 was measured by The Data Envelopment Analysis. The change in the total factor productivity and efficiency levels were measured by Malmquist TFP. As a result of the analysis, it was determined that the participation banks used resources in much more productive and effective way than the deposit banks.