Efficiency analysis on private capital banks with data enveloped analysis: The case of Turkey

As in all sectors, competition is swiftly increasing in the banking sector. Banks use their limited resources in the most important and effective way in terms of reaching their targets. In this study, 13 private banks which is operating in the years 2014, 2015 and 2016 is to evaluate the relative effectiveness of the bank in Turkey. n this context, it is aimed to measure the effectiveness of decision-making units under the assumptions of constant return and the variable return according to the scale, to calculate the efficiency of the scale and to determine the improvements to be made in order to bring in the ineffective units. It is also aimed to reveal the order of effective decision-making units within the calculated super activity scores.It is also aimed to reveal the order of effective decision-making units within the calculated super activity scores. While the number of branches, number of personnel, total assets and total interest expense are used as input variables, total profit, total credit and total deposits are used as output variable. This research used in 2014, 2015 and the data for the year 2016, the Banks Association of Turkey Banks, published in May of each year on the official site as the previous year's data were obtained from books. In the analyzes conducted, Dea Solver package program was used. The universe of the study consists of private banks have been operating in Turkey in 2014, 2015 and 2016. The sample was not selected within the scope of the study and analyzes were carried out over the entire research universe. As a result of the analyzes, it was found that the number of banks with effective scale was found to be 10 in 2014, 9 in 2015 and 9 in 2016 by giving effective results on both assumption of constant return on scale and variable return assumption. The average scores of privately-owned banks operating activities in the year 2013, 2014 and 2015 in Turkey showed an increase from 2014 when 2015 has decreased compared to the previous year in 2016. It is important for inefficient banks to increase their total profits by reducing the number of personnel and interest expenses in order to reach the efficiency limit.