Efficiency analysis of public and private participation banks operating in Turkey

Participation banking within the banking system is a type of banking that is developing day by day and its share in the banking sector is increasing. In our country, the establishment of a 'private finance institution' was allowed in 1983 and these institutions started their first activities in 1985. The spread of banks over time has increased the demands and expectations of customers. Banks have turned their focus to customers. Particularly, the prevalence of participation banks, which highlight the religious sensitivities of individuals, makes one think whether these banks are in a good financial position. While fulfilling this purpose, it is aimed to compare the efficiency of participation banks in Turkey. While fulfilling this purpose, the efficiency of the banks was evaluated with the data of total assets, equity, net profit, collected funds, number of branches, number of personnel and funds allocated for 2019, 2020 and 2021 December of participation banks with public and private capital in Turkey. Data Envelopment Analysis method was used while evaluating the effectiveness. As a result of the study, it was concluded that the bank with the lowest efficiency value is Albaraka Türk participation bank, and the bank with the highest efficiency is Ziraat Participation Bank.