Testing The Efficiency Of Turkish Banks (pp. 123-133)
Authors: Karacabey, Ali Argun(Ankara University, Ankara)
Abstract: This paper reports results from application of DEA on Turkish commercial banks. The aim of this paper is twofold. First one is to measure the “intermediation” efficiency and profitability of Turkish banks and the second one is to examine the relationship between efficiency and profitability. The overall results of the research indicated that the Turkish banking sector operates profitably despite its inefficiency in intermediation perspective. The results also showed that in an environment with low interest rates, low public borrowing requirements and severe competition the number of bank failures would be expected to increase.