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Developing a hybrid analytics approach to measure the efficiency of deposit banks

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  • Dincer, Hasan
  • Hacioglu, Umit
  • Tatoglu, Ekrem
  • Delen, Dursun

Abstract

This study aims at analyzing the efficiency of deposit banks using contemporary analytics-based decision-making techniques within a fuzzy environment. Specifically, a hybrid analytic model drawing on a fuzzy analytical network process and data envelopment analysis was developed and applied to the assessment of Turkish deposit banks quoted on Borsa Istanbul. The findings revealed that; (i) the efficiency results for banking activity vary for competitiveness and for the adoption of new technologies before and after the financial recession; (ii) the majority of deposit banks operating primarily with non-interest based factors found to be less-efficient; (iii) the ownership and capital structure of banks do not significantly contribute to their banking performance, as they were technically inefficient during the same period; and (iv) the inputs of the banking activities could be reduced while a constant level of output is maintained by adopting and properly using the most efficient technology to boost the technical efficiency.

Suggested Citation

  • Dincer, Hasan & Hacioglu, Umit & Tatoglu, Ekrem & Delen, Dursun, 2019. "Developing a hybrid analytics approach to measure the efficiency of deposit banks," Journal of Business Research, Elsevier, vol. 104(C), pages 131-145.
    • Handle: RePEc:eee:jbrese:v:104:y:2019:i:c:p:131-145
    DOI: 10.1016/j.jbusres.2019.06.035
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