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Assessing the adverse effects of interbank funds on bank efficiency through using semiparametric and nonparametric methods

Author

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  • Aysan, Ahmet Faruk
  • Ertek, Gurdal
  • Ozturk, Secil

Abstract

This paper investigates the relationship between interbank funds and efficiencies for the commercial banks operating in Turkey between 2001 and 2006. Data Envelopment Analysis (DEA) is executed to find the efficiency scores of the banks for each year, and fixed effects panel data regression is carried out, with the efficiency scores being the response variable. It is observed that interbank funds (ratio) has negative effects on bank efficiency, while bank capitalization and loan ratio have positive, and profitability has insignificant effects. Our study serves as novel evidence that interbank funds can have adverse effects in an emerging market.

Suggested Citation

  • 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.
  • Handle: RePEc:pra:mprapa:38113
    as

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    References listed on IDEAS

    as
    1. Ahmet Faruk Aysan & Ali Gunes & Osman Furkan Abbasoglu, 2007. "Concentration, Competition, Efficiency and Profitability of the Turkish Banking Sector in the Post-Crises Period," Working Papers 2007/20, Bogazici University, Department of Economics.
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Turkish Banking Sector; Interbank Funds; Data Envelopment Analysis; Efficiency; Panel Regression; Cluster Analysis; Two Step Procedure;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • G2 - Financial Economics - - Financial Institutions and Services
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • A10 - General Economics and Teaching - - General Economics - - - General

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