The efficiency of participation and conventional banks in turkey: Using data envelopment analysis
International Research Journal of Finance and Economics, vol.57, pp.156-168, 2010 (Scopus)
- Publication Type: Article / Article
- Volume: 57
- Publication Date: 2010
- Journal Name: International Research Journal of Finance and Economics
- Journal Indexes: Scopus
- Page Numbers: pp.156-168
- Keywords: Bank efficiency, Banking system, Interest-free banking, Profit and loss sharing
- Anadolu University Affiliated: Yes
Abstract
The comparison of performances of participation banks operating through profit and loss sharing (PLS) paradigm with conventional banks is a matter of discussion in international literature. This study analyzes the efficiencies of 26 private conventional banks and 4 participation banks in 2006 and 2009 through the data envelopment analysis (DEA) method. The DEA results reveal that while 3 out of 10 banks, identified inefficient in 2006, were participation banks, in 2009, only 1 out of 11 banks, identified inefficient, was a participation bank. © EuroJournals Publishing, Inc. 2010.