Assessment of bank efficiencies using data envelopment analysis: Application of the period 2006-2017

The banking sector plays an active role in the mechanism of the financial system thanks to the intermediation function. A robust banking system is required for the country economy which has a balanced progress. However, the banking sector is rapidly affected by the sudden deterioration and negative situations in the financial markets. Accordingly, the 'Transition Program to a Strong Economy' were implemented in order to cope with the problems caused by the crises in the economy and ensure stability. As a result of the restructuring, the sector has become a resistant structure. Nowadays, improvements in information technologies and competition in the financial environment force banks to work effectively. The efficiency of banks depends on their ability to convert their available resources into profitable investments, and efficiency analyses are used to determine it. In this way, both the performance levels of banks are determined, and their activities are calculated. In this study, 16 banks, perpetual in the Turkish Banking Sector in the period 2006-2017, are determined according to certain constraints, and analyzed through data envelopment analysis (DEA) in terms of their capital resources, and their performances are evaluated by comparison. According to the results of the analysis, comments are made. Keywords: Banking System, Transition to Strong Economy, Banking Sector Effectiveness Analysis, Data Envelopment Analysis