Aysan, Ahmet Faruk and Ceyhan, Sanli Pinar (2007): Market Disciplining Role of Crisis on the Restructuring of the Turkish Banking Sector.
Download (369kB) | Preview
This paper aims to find the productivity change in the banking sector between 1990 and 2006, with an emphasis to the period after 2001 crisis during which the Turkish banking system experienced a structural change. Using DEA, we find the Malmquist TFP Change Index and its mutually exclusive and exhaustive components of efficiency and technological changes over time. Additionally, we further decompose the technical efficiency change into pure technical and scale efficiency changes. The productivity of the banking sector is found out to have increased, the main reason being technological improvement rather than efficiency increase. For the cases of productivity decline, however, the changes come from the efficiency side rather than technology. An analysis with respect to the ownership status revealed that foreign banks were the most efficient group until 2001 after which state banks captured the first place. We attribute this change to the inflation accounting practice as well as better management of state banks with less political intrusion. The analysis with respect to bank size reveals that before 2000, the most efficient bank group was the medium-scale banks (the banks mainly purchased by foreign banks) followed by small banks while the efficiency scores converged after 2001.
|Item Type:||MPRA Paper|
|Original Title:||Market Disciplining Role of Crisis on the Restructuring of the Turkish Banking Sector|
|Keywords:||Turkish Banking Sector; Data Envelopment Analysis; Efficiency; Productivity; Post-Crises Period|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles
G - Financial Economics > G2 - Financial Institutions and Services > G20 - General
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
|Depositing User:||Ahmet Faruk Aysan|
|Date Deposited:||30. Oct 2007|
|Last Modified:||18. Feb 2013 04:46|
Arolat, O. S. (2006). Bankacılıkta Değişme ve Gelişmenin Yönü. http://www.dunyagazetesi.com.tr/news_display.asp?upsale_id=289250
Bonin, J.P., Hasan, I. and Wachtel, P. (2005). Bank Performance, Efficiency and Ownership in Transition Countries. Journal of Banking and Finance, 29,p. 31-53.
Caves, D.W., Christensen, L.R. and Diewert, D.E. (1982). The Economic Theory of Index Numbers and the Measurement of Input, Output and Productivity. Econometrica, 50, 1, p. 393-414.
Çakar, V. (2003). Yabancı Sermayeli Banka Girişleri ve Ulusal Bankacılık Sektörleri Üzerindeki Etkileri. TCMB Bankacılık ve Finansal Kuruluşlar Genel Müdürlüğü, TCMB Uzmanlık Yeterlilik Tezi, p.21.
Etkin, L.P., Helms, M.M., Turkkan, U. and Morris, D.J. (2000). The Economic Emergence of Turkey. European Business Review, 12, 2, p. 64-75.
Fare, R., Grosskopf, S., Norris, M and Zhang, Z. (1994). Productivity Growth, Technical Progress and Efficiency Change in Industrialized Countries. American Economic Review, 84,1, p. 66-83.
Favero, C. and Papi, L. (1995). Technical and Scale Efficiency in the Italian Banking Sector: A Non-parametric Approach. Applied Economics, 27, p. 385-395.
Fukuyama, H. (1993). Technical and Scale Efficiencies of Japanese Commercial Banks: A Nonparametric Approach. Applied Economics, 25, p. 1101-1112.
Gamal, M. A. and Inanoglu, H. (2005). Inefficiency and Heterogeneity in Turkish Banking: 1990–2000. Journal of Applied Econometrics, 20, p. 641–664.
Green, C.J., Murinde, V. and Nikolov, I. (2003). Are Foreign Banks in Central and Eastern Europe More Efficient than Domestic Banks? 24th SUERF Colloquium on Stability and Efficiency of Financial Markets in Central and Eastern Europe.
Isık, I. and Hassan, M.K. (2003a). Financial Deregulation and Total Factor Productivity Change: An Empirical Study of Turkish Commercial Banks. Journal of Banking and Finance, 27, p. 1455-1485.
Isık, I. and Hassan, M.K. (2003b). Financial Disruption and Bank Productivity: The 1994 experience of Turkish Banks. The Quarterly Review of Economics and Finance, 43, p. 291-320.
Isık, I. and Hassan, M.K. (2002). Technical, Scale and Allocative Efficiencies of Turkish Banking Industry. Journal of Banking and Finance, 26, p. 719-766.
Isık, I. and Reda, M. (2006). Efficiency and Productivity Change of Egyptian Commercial Banks(1995-2003). ERF 13th Annual Conference. December 2006.
Jemric, I. and Vujcic, B. (2007). Efficiency of Banks in Croatia: A DEA Approach. The Croatian National Bank, Feb. 2007.
Kasman, A. (2002). Cost Efficiency, Scale Economies, and Technological Progress in Turkish Banking. Central Bank Review 1, p. 1-20.
Malmquist, S. (1953). Index Numbers and Indifference Surfaces. Trabajos de Estatistica, 4, p. 209-242.
Naaborg, I., Scholtens, B., Haan, J., Bol, H. and Haas, R. (2003). How Important are Foreign Banks in the Financial Development of European Transition Countries? CESIFO Working Paper, No 1100, Dec.2003.
Özkan-Günay and Tektas (2006). Efficiency Analysis of the Turkish Banking Sector in Pre-crisis and Crisis Period: A DEA Approach. Contemporary Economic Policy, 24, 3, p. 418–431.
Steinherr, A., Tukel, A. and Ucer, M. (2004). The Turkish Banking Sector: Challenges and Outlook in Transition to EU Membership, Bruges European Economic Policy Briefings, No.9.
Tarim, A. (2001). Veri Zarflama Analizi. Matematiksel Programlama Tabanlı Göreli Etkinlik Ölçüm Yaklaşımı. Sayıştay Yayınları, No:15, 2001.
Tatari, B. (2005). Yabancıların Bankacılık Sektörüne İlgisi. İzmir Ticaret Odası , http://www.izto.org.tr/NR/rdonlyres/B942DEAC-917E-4200-81F5-2D065174DF75/4914/YabBanka1.pdf
Tschoegl, Adrian E. (2003). Financial Crises and the Presence of Foreign Banks. Wharton Financial Institutions Center Working Paper Series No: 03-35.Wharton Financial Institutions Center. Turkish BRSA. Finansal Piyasalar Raporu. Aralık 2006, sayı 4, Strateji Geliştirme Dairesi.
Turkish BRSA. Bankacılık Sektörü Yeniden Yapılandırma Programı-Gelişme Raporu VII. Ekim 2003.
Yıldırım (2002). Evolution of Banking Efficiency Within an Unstable Macroeconomic Environment: the Case of Turkish Commercial Banks. Applied Economics, 34, p. 2289-2301.
Zaim, O. (1995). The Effect of Financial Liberalization on the Efficiency of Turkish Commercial Banks. Applied Financial Economics 5, p. 257–264.
Zhu, J. (2003). Quantitative Models for Performance Evaluation and Benchmarking: Data Envelopment Analysis with Spreadsheets and DEA Excel Solver. Kluwer Academic Publishers, p. 1-5; 11; 278-280. “Banking in Turkey”, http://www.byegm.gov.tr/REFERENCES/banking.htm.