Productivity in Turkish banking system

ABSTRACT In Turkey, the non-bank financial intermediates are not developed as the western countries, so the banks form the basis of the Turkish Financial System and play an important role in collecting public savings and allocating them among different usages. Commercial banks are the dominating organizations of the system. The fact that money and capital markets have not been sufficiently developed has caused the system to operate in an oligopolistic market structure far from specialization. Generally, in the developing countries like Turkey, not enough wide spread of financial tools and financial intermediates, and growing stage of capital market, increases the place and importance of the banking sector in financial system. Although, there are many private banks in the banking sector, still the public banks have a dominating position in the sector as a consequence of the national banking concept formed by the State after the foundation of the Republic of Turkey. Productivity in the banking system can be defined as the banks performance of functioning as an intermediary by using minimum source. The Turkish Banking System with the place, general characteristics, the restructuring process after 1980 and especially, the problems inherited in the economic structure, has an importance for productivity analysis. In the first chapter of this study, the structural characteristics of The Turkish Banking System is discussed and in the second chapter, productivity and productivity measurement methods in banks are discussed. In the third chapter, productivity and the factors affecting productivity in Turkish Banking System, are tried to be analysed.