The effects of transition to modern banking and the 2008 global financial crisis on the efficiency of the Turkish banking sector

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2010
Sağ, Mustafa Onur
This thesis measures the effects of transformation of Turkish banks from a “traditional” one to a “modern” one over the period 2002-2009 and 2008 global financial crisis on efficiency of Turkish banks. Malmquist Total Factor Productivity Index is constructed using data envelopment analysis to measure the efficiency change in Turkish banking sector. The paper also analyzes the sensitivity of efficiency measures to different descriptions of inputs and outputs by employing two different approaches to describe the inputs and outputs of a bank. The major difference between the approaches is the use of deposits and non-deposit funds as input or output. Both confirm that the efficiency of the Turkish banking sector had increased over the period under examination and 2008 global financial crisis had adversely affected the efficiency of Turkish banks. The results show that the banks which had advanced in transformation to modern banking before 2001 financial crisis had experienced higher than the average increments in efficiency in the post-2001 financial crisis period.

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Citation Formats
M. O. Sağ, “The effects of transition to modern banking and the 2008 global financial crisis on the efficiency of the Turkish banking sector,” M.S. - Master of Science, Middle East Technical University, 2010.