Calculating the economic value added in liquidation of banks and its application in Turkish banking industry

The study titled ''Calculating the Economic Value Added in Liquidation of Banks and Its Application in Turkish Banking Industry'' first attempts to bring clarity on procedures and manners for calculating EVA at banks, after giving a brief explanation of the fundamental concepts of the Economic Value Added (EVA) approach. Later, the study infers banks under liquidation, after making a short mention of the developments and updates in Turkish Banking Industry and makes an analysis of the potential in them for creating economic added value, under liquidation.At this context, the EVA figures were calculated for four banks whose shares are offered to general public and who are in liquidation, in the Turkish banking industry, starting from 1998. Of the banks undergoing liquidation procedures, three were found to have created nil economic added value, with the remaining and only one, bearing the potential to create the added economic worth. Nonetheless, it was observed that this bank had also been taken to liquidation procedures, despite the fact that it creates economic added value.At the final part, the study concludes that it might be useful to give due account to the EVA approach, one of the most important value focused performance criteria, when determining the bank's performance for taking such strategic decisions as entering liquidation.