Competitiveness of the Turkish banking in the period of European Union

Increasing scope and density of the competition under the continuous globalisation puts on the agenda competitiveness that discused frequently at different sides for validity and measurement . In this connection, increasing financial foreign direct ınvestments and financial integration create necesaties, espacially for emerging market conutries, to watch multinational banking operaritions under the third wave banking and to know national banking industry competitiveness in current global finacial crisisWith effect EU membership process for Turkey and suitable world wide conditions, multinational banking operations became fast increase last years towards our country. Even so ıt hasn?t important dimension yet, besides the reality of the foreign banks, majority of them comes from EU countries, in the industry in a short time and impotant effect of these banks on the economy, causes debate for the financial integration at different sides. Without any political preference for the foreign banks enterance, under the presure of multinational banks, to go on natioanal banking operations are closely related to their sufficient competitiveness.I have used non- parametric DEA technique to determine competitiveness of the TBE whith efficiency indicators. I?ve admited variable return to scale and ınputs and outputs have also been determined with ıntermedition approach.Technical efficiency improvements of the ındustry, changing efficiency in respect of banks size, scale efficiency of banks, and effiecies of domestic and foreign banks which run under the same enviromental conditions have been compared by the analysis with in the period for 2002-2007. Source of efficiency in the TBE have been determined whith the Molmquist total factor productive indexies for the same period. Also, Turkısh and EU conutries banking industries competitiveness has been comperated with descriptive perspective and political suggestings have been developedKey Words: Turkısh Banking Industry, Competitiveness, Multinational Banking, Data Envelope Analysis and Efficiency.