Measuring Total Factor Productivity with The Malmquist Index and Data Envelopment Analysis (DEA) : An Application in Deposit Banks Listed in BIST

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It is known that banks play a significant role in terms of the financial intermediation and economic growth. Increasing competition has steered banks into providing service in numerous markets. In this study, we deal with the problem of measuring the efficiency and the total factor productivity of the listed deposit banks between 2007-2011 periods and Malmquist Index Method has been applied for measuring efficiency. Deposit, equity capital and interest expenses have been used as input variables. As for the net profit and interest income have been used as output variables. As a result of the study; seventh decision unit has become first with the score of 1,000, ninth decision unit has become second with the score of 0,997 and second decision unit has become third with the score of 0,989. On the other hand, it has been observed that the total factor efficiency of ninth, eleventh and third decision units has increased and that the others’ efficiency has decreased. As of periods, Malmquist TFVD Index has showed increase between the years of 2008-2009, but then it has decreased.

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Data Envelopment Analysis , Malmquist Total Factor Efficiency , Turkish Banking Sector

Journal Of Economics and Administrative Sciences, Ataturk University

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Journal Of Economics and Administrative Sciences, Ataturk University