Title: The efficiency of the Turkish banking system during 2000-2005

Authors: Roman Matousek, Selim Dasci, Bruno S. Sergi

Addresses: London Metropolitan Business School, Centre for International Capital Markets, 84 Moorgate, London EC2M 6SQ, UK. ' London Metropolitan Business School, Centre for International Capital Markets, 84 Moorgate, London EC2M 6SQ, UK. ' University of Messina, DESMaS 'V. Pareto', Via T. Cannizzaro, 278, 98122 Messina, Italy

Abstract: This study analyses the efficiency of the Turkish bank system over the period 2000-2005. The estimation showed that inefficiency decreases over the period under consideration and the analysis unambiguously indicates that the Turkish banking system has a large potential for improvement. The state banks appear to reduce their costs more comfortably than the private banks by using their size due to their low employee expenses and less expensive cost of borrowing. The restructuring programme appears to have transformed the state-banks into the more efficient and profitable institutions.

Keywords: cost efficiency; Turkey; Turkish banks; banking efficiency; state banks.

DOI: 10.1504/IJEPEE.2008.021281

International Journal of Economic Policy in Emerging Economies, 2008 Vol.1 No.4, pp.341 - 355

Published online: 16 Nov 2008 *

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