Banking sector's productivity problems end solitions in Turkey's economy

The banks which constitute the foundation of the economy is a financial institution which is a mediator between the funds in deficit and the funds in excess. For this reason, any problem encountered in this sector effects the whole economy negatively. From this point, it is vital to evaluate the efficiency and productivity of the banking sector as individual and the whole sector which overcomes the significant crises in the past. This argument is important in terms of whether this financial system is healthy or unhealthy. Recently the investigation of productivity and efficiency is on the agenda much more because of the rising competition conditions and the involvement of the foreing banks in this sector intensively.In this study besides the problems of the commercial banks which is active in this sector, it is also emphasized the reasons of unproductivity of the banks by analyzing the efficieny and productivitiy of them.Between the years 2001 and 2008 as a result of investigation of the productivity of the commercial banks in our country, it is proved that publicly funded and large scale banks are more efficient than the other banks. When the scale is getting larger, it is revealed that the efficiency of the bank is rising more. In this case it is recognized that the small scale banks have the problems with the scale.As a result of Malmquist Total Factor Productivitiy Analysis, the efficiency of banks has been rising especially since 2005 and it is suggested that technological progress is a determinig factor.In this study, Canonical Correlation Analyzing is applied to exhibit the structure of the relation between dependent and independent variables which are more than one.