Evaluation of branch-based efficiency in Turkish deposit banks: Evidence from privately-owned banks

Abstract

The aim of the chapter is to measure the non-interest income based branch efficiency among privatelyowned banks in the Turkish banking sector between 2008 and 2012. The chapter is built on the three inputs and three outputs model of bank branch efficiency and empirical results are constructed with the data envelopment analysis (DEA) in the limitation of input-orientated constant returns to scale model. The results demonstrate that all privately-owned banks improve non-interest based efficiency performance by the years and mean efficiency in the sector regularly rises due to the increasing overall competitive factors.