University of Sussex
Browse

File(s) not publicly available

Efficiency of Turkish banking: two-stage network system. Variable returns to scale model

journal contribution
posted on 2023-06-08, 12:26 authored by Hirofumi Fukuyama, Roman Matousek
This study curries out a systematic analysis of the cost, technical and allocative efficiency of the Turkish banking system from 1991 to 2007, under the assumption of variable returns to scale. This unique dataset allows to analyse changes in bank efficiency before and after the financial crises. The applied estimation approach is based on a two-stage network model introduced by Fukuyama and Weber (2010), where in the first stage of production, banks use inputs to produce an intermediate output (deposits) that becomes an input to a second stage where final outputs are produced. We have found several interesting results. Our results show that bank efficiency reflected the state of the Turkish economy before and after crises in 1993–1994 and 2000–2001. Furthermore, there persists a gap between the best and worst performing banks. We could not confirm the hypothesis that foreign banks have higher efficiency scores as we saw in new EU countries.

History

Publication status

  • Published

Journal

Journal of International Financial Markets, Institutions and Money

ISSN

1042-4431

Publisher

Elsevier

Issue

1

Volume

21

Page range

75-91

Department affiliated with

  • Business and Management Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2012-09-20

Usage metrics

    University of Sussex (Publications)

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC