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Total Factor Productivity Change in Turkish Banking Sector During The Crisis Periods

Author

Listed:
  • Ferda Keskin Onen

    (Milli Egitim Bakanligi,Diyarbakır, Turkiye)

  • Mehmet Hasan Eken

    (Kirklareli Universitesi,Uygulamali Bilimler Yuksekokulu, Kirklareli, Turkiye)

  • Suleyman Kale

    (Kirklareli Universitesi,Uygulamalı Bilimler Yuksekokulu, Kirklareli, Turkiye)

Abstract

The precondition of the increase in the efficiency of the banks depends on their ability to compete. Through the banking sector with high competitive power, economic dynamism is promoted, and economic stability is ensured. The alteration in macroeconomic conditions affects the performance of the banking sector and financial stability. This study was used the malmquist productivity index to analyze the efficiency of 19 commercial banks operating in Turkey during the period of 1990 - 2012 for intermediation and profit approach. Banks have experienced productivity loss according to both approaches in times of crisis. The efficiency of intermediation function in the banking sector have increased owing to the regulations made ​​under the restructuring program of the Turkish banking sector and the disinflation process. The regression analysis results reveals that the impact of credit / deposit ratio, ROA, ROE and inflation rate is positive on bank’s total factor productivity. As ROE increases, banks' total factor productivity has decreased under the intermediation approach. Increase in GDP has led to increase in bank’s technical efficiency for intermediation and profit approach. Key Words: Malmquist Index, Efficiency, Crisis, Regression Analysis

Suggested Citation

  • Ferda Keskin Onen & Mehmet Hasan Eken & Suleyman Kale, 2016. "Total Factor Productivity Change in Turkish Banking Sector During The Crisis Periods," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 5(5), pages 01-18, Special I.
  • Handle: RePEc:rbs:ijbrss:v:5:y:2016:i:5:p:01-18
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