FOREIGN BANK EFFICIENCY IN TURKEY: AN APPLICATION OF DATA ENVELOPMENT ANALYSIS

This study analyses the efficiency of foreign banking systems included within the turkish banking sector, having become either owners or partners, after the 2001 economic crisis. the first part of the study touches on the turkish banking system in general. the next part explains the history of the entry of foreign banks into the turkish banking system. in this study which analyses the efficiency of foreign banks, the term “efficiency” is defined and then theoretical approaches to its measurement have been emphasised. one of the fundamental aspects of this study which is the data envelopment analysis’ and its theoretical structure are explained. in the last part of the study we use the data envelopment analysis’ to analyse foreign banking activity for the 2008-2012 period. we conclude that foreign banking activity has decreased over the years and any significant influence has not been observed.