Cost Efficiency In Turkish Banking Sector (2005-2013)

Creative Commons License

Ayyalcinkaya A. E., Kok R.

EGE ACADEMIC REVIEW, cilt.16, sa.2, ss.273-286, 2016 (ESCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 16 Sayı: 2
  • Basım Tarihi: 2016
  • Doi Numarası: 10.21121/eab.2016216929
  • Dergi Adı: EGE ACADEMIC REVIEW
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Sayfa Sayıları: ss.273-286
  • Anahtar Kelimeler: Banks, Cost Efficiency, Stochastic Frontier Analysis, Effects of Inefficiency, PRODUCTION FRONTIERS
  • Dokuz Eylül Üniversitesi Adresli: Evet

Özet

This study examines how credit mechanism works in banking and whether resource allocation between the banks is efficient or not. We use stochastic frontier analysis (SFA) that is one of the parametric methods, by using the database for 21 banks in Turkey for the period of 2005-2013. The weighted average cost efficiency of the banks is measured in comparison with the most efficient bank that performs under the same conditions and that produces the same output with them. According to the analytical findings, we determine that increasing of credit cost affects resource allocation disruptively in financial system. As regards, some suggestions are developed on economic policy via internal and external causilities that bring about cost inefficiency.