Skip to main content
Article thumbnail
Location of Repository

Evaluating the efficiency of Turkish commercial banks: an application of DEA and Tobit Analysis

By Peter M. Jackson and Meryem Duygun Fethi

Abstract

The earlier version of this study was presented at the International DEA Symposium, University of Queensland, Brisbane, Australia, 2-4 July, 2000. This paper is also available from the EPRU website at http://www.le.ac.uk/ulsm/research/epru/dispaper.htmlThe purpose of this paper is to investigate the performance of Turkish (TR) commercial\ud banking sector. We evaluate the technical efficiency of individual TR banks using the nonparametric frontier methodology, the Data Envelopment Analysis (DEA). To investigate the determinants of efficiency, we use the Tobit model. This analysis aims to explain the variation in calculated efficiencies to a set of explanatory variables, i.e. banks size, number of branches, profitability, ownership, and capital adequacy ratio. The analysis covers the year, 1998. We find that larger and profitable banks are more likely to operate at higher levels of technical efficiency. Also another finding reveals that the capital adequacy ratio has a statistically significant adverse impact on the performance of banks, which may reflect\ud a risk-return tradeoff in the sector

Publisher: Efficiency and Productivity Research Unit, University of Leicester
Year: 2000
OAI identifier: oai:lra.le.ac.uk:2381/369
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://hdl.handle.net/2381/369 (external link)
  • http://www.le.ac.uk/ulsm/resea... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.