Efficiency Analysis of Participation Bank in Turkey

As in all developing countries in Turkey, banks are the most important element of the financial sector. It is very important that banks take part in the economy effectively and efficiently for the development and development of the countries. The majority of the population in Turkey has adopted the religion of Islam. Due to the prohibition of interest in Islam, many investors avoid the banking system and its products, instead investing in gold, foreign currency and real estate. Interest-sensitive banking system and interest-sensitive financial instruments are created in many countries in order to bring the savings of the sector into the economic system. In total, 5 participation bank, operates in three private and two state-owned banks Turkey. In this study, activity analysis of 5 participation banks operating in Turkey between 2009 and 2016 was conducted. 5 activity measurement of selected inputs and outputs for the participation bank was performed using Data Envelopment Analysis (DEA), a type of analysis based on linear planning. CCR and BCC activity scores were calculated as output-oriented. As a result of the 5 participation banks in Turkey between the years 2009 to 2016 it was generally observed to be effective. It is concluded that their productivity and asset size increased towards 2016