Measuring the efficiency of foreign capital banks in Türkiye by data envelopment analysis: The period of 2015-2021

One of the most important factors affecting the development levels of countries is the free distribution of foreign trade and international capital movements in many countries. As a result of this process, the increase in capital participation of foreign banks has been a remarkable development. For this reason, analyzing the impact of foreign bank entries on a country's banking system, especially in terms of efficiency, has been the subject of many studies. Considering the changing economic conditions and the rapidly increasing competitive environment, it has become very important for decision-making departments with similar structures to be able to compare their relative effectiveness and to identify their ineffective resources and set targets for the inefficient departments. Based on the understanding of this importance, data envelopment analysis techniques have emerged. In the study, the activities of foreign banks between 2015 and 2021 in Turkey, a developing country with intense foreign bank entries, were tested with Data Envelopment Analysis. The variables required for the test were evaluated by experts and included in the analysis. As a result of the analysis, it has been determined that the increase in the efficiency of foreign banks has increased over the years and the reason for this is the changing country conditions and the factors affecting these conditions in each period. Key Words: Foreign Capital Banks, Efficiency Analysis, Data Envelopment Analysis