Comparative efficiency analysis of Turkish banking sector with ENTROPİ Based OCRA and EATWIOS methods

Banks, one of the most important institutions of the financial system, undertake the task of intermediation by directing the funds they collect from the economic units with surplus funds to the economic units in need of funds. Ensuring economic growth by developing the intermediary function of the banking sector is very important for national economies. For this reason, it is of great importance to measure the financial efficiency of banks, which are in a strategic position in the financial system. In this study, it is aimed to evaluate the financial efficiency of 23 banks operating in Turkey in the period of 2009-2019 with multi-criteria decision making techniques. The criteria used in the study were determined with the help of the Entropy technique in line with the expert opinions of the academicians and bankers, the stakeholders of the subject chosen as decision makers. The 43 criteria included in the study were reduced to 6, and 3 were used as input factors and 3 as output factors. "Equity / Total Assets", "Total Deposits / Total Assets" and "Liquid Assets / Deposits + Non-Deposit Resources" as input factors, "Total Loans/Total Deposit", "Profit Before Tax/Total Assets" and "Special Net Interest Income/Total Assets After Provisions" criteria are included in the model as output factors. The weight measures of the criteria used were calculated by the Entropy technique. Then, comparative efficiency analysis was made with OCRA and EATWIOS techniques. As a result of the analysis, the public bank with the highest efficiency in the period of 2009-2019 was Ziraat Bank, the private bank Fibabanka and the foreign bank Deutsche Bank, the public bank with the lowest efficiency Halk Bank, the private bank Turkish Bank, the foreign bank Turkland Bank and It has been determined that the efficiency of foreign banks in the Turkish banking sector is higher. It is thought that the findings obtained as a result of the analysis will contribute to the financial efficiency of the Turkish banking sector.