A comparison of the efficacy between participatory and depository banking with method of the data enveloping analysis in Turkey

The banking system is to perform actions such as in providing to safe environment for the money to maintain a, collecting the money in circulation and payment of the check and the letter of credit transactions, to make buying and selling securities on behalf of customers, to give surety and bond, to give safe-deposit service, travelers checks and credit advising on issues such as card, bank letters of reference to companies and business people and operates in a variety of bills to make educationOn the other hand the banking sector system is built upon the interest rates either in the world or in Turkey. The Muslims and those who have sensitivity of religion, keep themselves away from banking system with interest due to Islam forbidding interest. That is the reason why banking system with no interest, means that, participatory banking system performs all over the world and Turkey to transmit their saving into the economy. As shown that the banking system is one of the most significant actors of the financial system. From this perspective the efficacy of the banking system is very important in the aspect of social and economy. Therefore, it is studied to make a comparison of efficacy between participatory and private capital Money deposit bank with the assumption of and in accordance with the scale changing income and with focus of input VZA and Malquist total factor efficiency index. With the research of three input varieties (deposits/collected funds, interests output/ benefit share outputs) and three outputs (credits, total placeman/used funds, interests income/benefits share income and net salary incomes) were used. At the result of the analysis the efficacy of the participatory banks and deposits banks were shown in detailed manner. There were policy advisories for inefficient banks to be effective. Apart from this, in this study, it was stated that participatory banks were more successful performance efficacy than private capital deposits banks in the aspects of varieties studied in this thesis.The share of the Participatory banking should be increased in the banking system due to they bring vertical dimensions with their alternative products, due to they create significant funds mostly for real sector, due to they contribute to economy, production and increase of the welfare of the country with taking into consideration of individuals? religious sensitivity.Key words: Banking, Participatory Banks, Private Capital Deposits Banks, Efficiency, Efficacy, Data Enveloped Analysis, Malmquist