Efficiency and productivity analysis in turkish banking industry

In order to ensure economic stability in a country, the financial system in that country must operate without any problem. A significant part of the financial system in our country is the banking sector which has many critical duties and responsibilities. Banks are intermediary institutions that allow the money to change hands in an economy and collect the deposits of those who want to make savings and transfer these amounts to those in need. In addition, banks provide resources to finance important investments planned to be made within the country and ensure that savings are transferred to the required areas. In addition to intermediary duties, the monetary policies of the governments according to the course of the economy are also achieved through the banks. Therefore, in order to reflect the desired results of economic indicators in a country, existing resources should be used as efficiently as possible in the banking sector where competition is intense and productivity should be kept above a certain level by providing maximum benefit. In this study, the efficiency and efficiency levels of 16 banks operating in Turkey between 2004 and 2018 were analysed using Data Envelopment Analysis and Malmquist Total Factor Productivity Index.