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Structural Change and the Efficiency of Banking In Turkey: Does Ownership Matter?

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  • Aysan, Ahmet Faruk
  • Ceyhan, Sanli Pinar

Abstract

In a period of increasing foreign bank entry, the popular question of “what does foreign bank entry bring to the Turkish banking sector?” can partly be answered with respect to the productivity effects. This paper aims to find the productivity change in the banking sector between 1990 and 2007 just before the global crisis. We are especially interested in the period beginning with 2001 after which the Turkish banking system has almost been flooded with foreign banks. Using a sample of 20 commercial banks, we attempt to find the Data Envelopment Analysis (DEA) type Malmquist Total Factor Productivity Change Index over the specified period. We also look at the source of this change decomposing this index into its mutually exclusive and exhaustive components of efficiency change and technological change. Additionally, we further decompose the technical efficiency change into pure technical efficiency change and scale efficiency change. The DEA results guide us in comparing the performances of banks of different ownership status (state, private and foreign banks) and of different size

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  • Aysan, Ahmet Faruk & Ceyhan, Sanli Pinar, 2008. "Structural Change and the Efficiency of Banking In Turkey: Does Ownership Matter?," MPRA Paper 17849, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:17849
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    Cited by:

    1. Ahmet Faruk Aysan & Mustafa Haluk Güler & Cüneyt Orman, 2013. "Sustaining growth in emerging markets: the role of structural and monetary policies," Chapters, in: Ewald Nowotny & Peter Mooslechner & Doris Ritzberger-Grünwald (ed.), A New Model for Balanced Growth and Convergence, chapter 9, pages 122-144, Edward Elgar Publishing.
    2. Akin, Guzin Gulsun & Aysan, Ahmet Faruk & Yildiran, Levent, 2008. "Transformation of the Turkish Financial Sector in the Aftermath of the 2001 Crisis," MPRA Paper 17803, University Library of Munich, Germany.
    3. Aysan, Ahmet Faruk & Ertek, Gurdal & Ozturk, Secil, 2009. "Assessing the adverse effects of interbank funds on bank efficiency through using semiparametric and nonparametric methods," MPRA Paper 38113, University Library of Munich, Germany.
    4. Ahmet AYSAN & Cagri HUSNU DALGIC & Murat DEMIRCI, 2010. "Macroeconomic, Sector Specific and Bank Specific Determinants of Net Interest Rate Margin: What Matters More For An Emerging Market Economy?," EcoMod2010 259600015, EcoMod.

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    More about this item

    Keywords

    Turkish Banking Industry; Foreign Bank Entry; Globalization of Banking; Data Envelopment Analysis; Efficiency;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services

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