The evaluation of the efficiency of banking consolidation in Turkey by data envelopment analysis

Condensed technological developments and increasing liberalisation tendancy at the last quartile of the 20th century have resulted in the global economy being more effective. Towards the end of the 1980s, legal regulations have been legislated in Turkey with the aim of an entegration to free market economy thus, developments in banking sector have been established. Adverse economic events around the world in the late 90s have also affected Turkey?s economy. As a result of these events, there has been a depression in banking sector which was already financially fragile. Many banks have declared bankruptcy or have been taken over by the fund after the depression. At this stage, lots of mandatory consolidations have been performed. The economic stabilization and reconstruction in the banking sector in the beginning of the 2000s have increased the interest of the foreign banks towards Turkey.The purpose of this study is to analyse the efficiency of the consolidations in Turkish Banking Sector in recent years.