2019-2021 period of commercial banks in Turkey research of their activities

The banking sector is very important for the Turkish economy. It is one of the most important sectors in terms of both deposit size and employment figures in Turkey. In this context, it is very important to evaluate the extent to which banks utilise their resources efficiently. In this study, the efficiency of 17 deposit banks operating in Turkey is analysed by applying data envelopment analysis to the 3-year data set for the years 2019-2021. Data for the 2019-2020 period were obtained from the annual statistical reports of the Banks Association of Turkey, and data for 2021 were obtained from the official website of the Public Disclosure Platform. Super-efficiecny data envelopment analysis was applied to the obtained data. Banks' total labour, interest expense, administrative expense and non-interest expense are taken as input variables, and interest income and non-interest income are taken as output variables. During the analysis period, the average efficiency level was in the range of 0.98- 0.96. It is observed that the average efficiency level is very close to the efficiency level in general. This shows that banks are operating efficiently and utilising their resources effectively, but they do not have much opportunity for improvement. In addition, ROA and ROE ratios followed parallel performance throughout the analysis period, decreasing in 2020 and recovering again in 2021. Keywords: Bank Efficiency, Turkish Banks, Data Envelopment Analysis