A comparative efficiency analysis of public capital banks in Turkish banking system: An evaluation of 2008-2017 period

Today, the Turkish banking sector is one of the most important dynamics of financial market and one of the most important dynomos of the country's economy..The sector, in which 34 deposit banks operate as of 2018, reached significant levels by exceeding 3 trillion Turkish Liras with asset size. The public capital banks also assume important roles in terms of the Turkish banking sector and for the country within the scope of the responsibilities they undertake for the realization of major projects. Ziraatbank, which has existed since the pre-Republic period under different forms, Halkbank, which was established after the proclamation of the Republic in 1933 and Vakıfbank which was established in 1954, are the 3 institutions operating as public banks in the Turkish banking sector. Today, the total assets of Ziraatbank, Halkbank and Vakıfbank are equal to one third of the all banking sector. The study was carried out in order to compare the efficiencies of public banks in Turkish banking sector, in this context, efficiency analysis of public banks between 2008-2017 was conducted comparatively by employing data envelopment analysis. The study consists of three parts. In the first part of the study, the development of the banking sector and today's current structure in Turkey has been explained historically by covering the before and after the Republic periods. In the second part, the types of the banks operating in the Turkish banking sector are explained and some indicators such as deposits, loans, shareholders' equity and assets of deposit banking are evaluated and interpreted in the light of the graphical illustrations. In the third and last part, different activity measurement methods were interpreted and the details of the data envelopment analysis used in the study were given and the application of the study was explained. After the analysis results were evaluated, Vakıfbank reached a more effective score than Ziraatbank and Halkbank. Particularly, Vakıfbank reached the full efficiency level in all of the years discussed; Ziraatbank reached full efficiency level in 2008, 2016 and 2017; Halkbank reached full efficiency level in 2013, 2016 and 2017.