Efficiency analysis of deposit banks listed on Borsa Istanbul (BIST) in the Turkish banking sector

In the banking sector, which has an undeniable size and influence in the financial system in the national economies, the need for performance measurements is increasing in line with the targets of reaching the maximum production level both in the intermediary function it undertakes and in the process of increasing competition and technological integration. Efficiency measurement is the best performance measurement model. So much so that the effectively functioning banking sector symbolizes reaching the maximum production level with the use of rational resources, while it also constitutes the source of sustainable growth and development. In the study, the constraint of deposit banks traded in Borsa Istanbul, which has the power to represent the development and transformation of the sector, and efficiency analyzes for the period 2002-2021 were made. Linear programming-based and output-oriented CCR-DEA method, which is frequently used especially in bank efficiency measurements, was used in the analysis. The fact that variable selections cause different efficiency scores formed the basis for four analyzes with variable combinations in the study and to detect these differences in the context of efficiency scores. While the input variables (number of personnel, total assets, equity, interest expenses) are the same in all analyzes III. In the analysis, deposits are also included in the inputs. On the other hand, profit in I. analysis, II. deposit in analysis, III. loans in analysis and IV. In the analysis, three variables were considered together as the output variable. I. / II. / III. / IV. In the analysis, it was concluded that Garanti / Halkbank / Vakıfbank / Garanti, Halkbank, Vakıfbank were the most efficient bank, while İş Bankası / QNB Finans / İş Bankası / İş Bankası was the bank farthest from the effective limit. As a result of all analyzes, Garanti Bank was found to be the most efficient bank, while İşbank was found to be the most inefficient bank. While Malmquist Total Factor Productivity Index values proved the development of the sector with an increase of 9.8%, the biggest increase occurred in the 2002-2003 period and its source was determined as technological change.