Measuring Banking Efficiency in the Pre- and Post-Liberalization Environment : Evidence from the Turkish Banking System

The authors examine banking efficiency before and after liberalization, drawing on Turkey's experience. They also investigate the scale effect on efficiency by type of ownership. Their findings suggest that liberalization programs were followe...

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Main Authors:	Denizer, Cevdet A., Dinc, Mustafa, Tarimcilar, Murat
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	AVERAGE PRODUCTIVITY BANK PERFORMANCE BANK REGULATION BANKING INDUSTRY BANKING SECTOR BANKING SECTOR REFORMS BANKING SYSTEM BANKING SYSTEMS BANKING THEORY BANKS CAPITAL ADEQUACY CAPITAL FLOWS COMMERCIAL BANKS CONSTANT RETURNS TO SCALE DATA ENVELOPMENT ANALYSIS DEPOSIT INSURANCE DEPOSIT INSURANCE SCHEMES DEPOSITORS DEPOSITS DEREGULATION DEVELOPMENT STRATEGY ECONOMIC GROWTH ECONOMIC POLICIES FINANCIAL ASSETS FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL REFORMS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEMS FOREIGN BANKS FOREIGN COMPETITION FUTURE RESEARCH GLOBALIZATION GLOBALIZATION OF FINANCIAL MARKETS GOVERNMENT SECURITIES GUIDELINES INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIALIZED COUNTRIES INEFFICIENCY INSURANCE INTEREST INCOME INTEREST RATE INTEREST RATES INTERNATIONAL TRADE LIQUIDITY MATHEMATICAL PROGRAMMING MERGERS MULTIPLIERS OPERATING EXPENDITURES OPERATING EXPENSES OPTIMIZATION ORGANIZATIONAL STRUCTURE OWNERSHIP STRUCTURE PERFORMANCE ANALYSIS POLITICAL INTERFERENCE PRIVATE BANKS PRODUCTION FUNCTION PRODUCTION TECHNOLOGY PRODUCTIVITY PROFITABILITY RETURNS TO SCALE RISK MANAGEMENT SAVINGS SCALE EFFECT SECURITIES SOLVENCY STATE BANKS STATE OWNED BANKS STRUCTURAL ADJUSTMENT TIME SERIES TRANSITION ECONOMIES
Online Access:	http://documents.worldbank.org/curated/en/2000/11/717463/measuring-banking-efficiency-pre--post-liberalization-environment-evidence-turkish-banking-system http://hdl.handle.net/10986/19767

id	okr-10986-19767
recordtype	oai_dc
spelling	okr-10986-197672021-04-23T14:03:44Z Measuring Banking Efficiency in the Pre- and Post-Liberalization Environment : Evidence from the Turkish Banking System Denizer, Cevdet A. Dinc, Mustafa Tarimcilar, Murat AVERAGE PRODUCTIVITY BANK PERFORMANCE BANK REGULATION BANKING INDUSTRY BANKING SECTOR BANKING SECTOR REFORMS BANKING SYSTEM BANKING SYSTEMS BANKING THEORY BANKS CAPITAL ADEQUACY CAPITAL FLOWS COMMERCIAL BANKS CONSTANT RETURNS TO SCALE DATA ENVELOPMENT ANALYSIS DEPOSIT INSURANCE DEPOSIT INSURANCE SCHEMES DEPOSITORS DEPOSITS DEREGULATION DEVELOPMENT STRATEGY ECONOMIC GROWTH ECONOMIC POLICIES FINANCIAL ASSETS FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL REFORMS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEMS FOREIGN BANKS FOREIGN COMPETITION FUTURE RESEARCH GLOBALIZATION GLOBALIZATION OF FINANCIAL MARKETS GOVERNMENT SECURITIES GUIDELINES INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIALIZED COUNTRIES INEFFICIENCY INSURANCE INTEREST INCOME INTEREST RATE INTEREST RATES INTERNATIONAL TRADE LIQUIDITY MATHEMATICAL PROGRAMMING MERGERS MULTIPLIERS OPERATING EXPENDITURES OPERATING EXPENSES OPTIMIZATION ORGANIZATIONAL STRUCTURE OWNERSHIP STRUCTURE PERFORMANCE ANALYSIS POLITICAL INTERFERENCE PRIVATE BANKS PRODUCTION FUNCTION PRODUCTION TECHNOLOGY PRODUCTIVITY PROFITABILITY RETURNS TO SCALE RISK MANAGEMENT SAVINGS SCALE EFFECT SECURITIES SOLVENCY STATE BANKS STATE OWNED BANKS STRUCTURAL ADJUSTMENT TIME SERIES TRANSITION ECONOMIES The authors examine banking efficiency before and after liberalization, drawing on Turkey's experience. They also investigate the scale effect on efficiency by type of ownership. Their findings suggest that liberalization programs were followed by an observable decline in efficiency, not an improvement. During the study period Turkish banks did not operate at the optimum scale. Another unexpected result was that efficiency was no different between state-owned and privately owned banks. Banks that were privately owned or foreign owned had been expected to respond better to liberalization, because they were smaller and more dynamically structured, but they were no more efficient than state-owned banks. One reason for the systemwide decline in efficiency might have been the general increase in macroeconomic instability during the period studied. 2014-08-27T18:23:54Z 2014-08-27T18:23:54Z 2000-11 http://documents.worldbank.org/curated/en/2000/11/717463/measuring-banking-efficiency-pre--post-liberalization-environment-evidence-turkish-banking-system http://hdl.handle.net/10986/19767 English en_US Policy Research Working Paper;No. 2476 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Turkey
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	AVERAGE PRODUCTIVITY BANK PERFORMANCE BANK REGULATION BANKING INDUSTRY BANKING SECTOR BANKING SECTOR REFORMS BANKING SYSTEM BANKING SYSTEMS BANKING THEORY BANKS CAPITAL ADEQUACY CAPITAL FLOWS COMMERCIAL BANKS CONSTANT RETURNS TO SCALE DATA ENVELOPMENT ANALYSIS DEPOSIT INSURANCE DEPOSIT INSURANCE SCHEMES DEPOSITORS DEPOSITS DEREGULATION DEVELOPMENT STRATEGY ECONOMIC GROWTH ECONOMIC POLICIES FINANCIAL ASSETS FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL REFORMS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEMS FOREIGN BANKS FOREIGN COMPETITION FUTURE RESEARCH GLOBALIZATION GLOBALIZATION OF FINANCIAL MARKETS GOVERNMENT SECURITIES GUIDELINES INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIALIZED COUNTRIES INEFFICIENCY INSURANCE INTEREST INCOME INTEREST RATE INTEREST RATES INTERNATIONAL TRADE LIQUIDITY MATHEMATICAL PROGRAMMING MERGERS MULTIPLIERS OPERATING EXPENDITURES OPERATING EXPENSES OPTIMIZATION ORGANIZATIONAL STRUCTURE OWNERSHIP STRUCTURE PERFORMANCE ANALYSIS POLITICAL INTERFERENCE PRIVATE BANKS PRODUCTION FUNCTION PRODUCTION TECHNOLOGY PRODUCTIVITY PROFITABILITY RETURNS TO SCALE RISK MANAGEMENT SAVINGS SCALE EFFECT SECURITIES SOLVENCY STATE BANKS STATE OWNED BANKS STRUCTURAL ADJUSTMENT TIME SERIES TRANSITION ECONOMIES
spellingShingle	AVERAGE PRODUCTIVITY BANK PERFORMANCE BANK REGULATION BANKING INDUSTRY BANKING SECTOR BANKING SECTOR REFORMS BANKING SYSTEM BANKING SYSTEMS BANKING THEORY BANKS CAPITAL ADEQUACY CAPITAL FLOWS COMMERCIAL BANKS CONSTANT RETURNS TO SCALE DATA ENVELOPMENT ANALYSIS DEPOSIT INSURANCE DEPOSIT INSURANCE SCHEMES DEPOSITORS DEPOSITS DEREGULATION DEVELOPMENT STRATEGY ECONOMIC GROWTH ECONOMIC POLICIES FINANCIAL ASSETS FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL REFORMS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEMS FOREIGN BANKS FOREIGN COMPETITION FUTURE RESEARCH GLOBALIZATION GLOBALIZATION OF FINANCIAL MARKETS GOVERNMENT SECURITIES GUIDELINES INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIALIZED COUNTRIES INEFFICIENCY INSURANCE INTEREST INCOME INTEREST RATE INTEREST RATES INTERNATIONAL TRADE LIQUIDITY MATHEMATICAL PROGRAMMING MERGERS MULTIPLIERS OPERATING EXPENDITURES OPERATING EXPENSES OPTIMIZATION ORGANIZATIONAL STRUCTURE OWNERSHIP STRUCTURE PERFORMANCE ANALYSIS POLITICAL INTERFERENCE PRIVATE BANKS PRODUCTION FUNCTION PRODUCTION TECHNOLOGY PRODUCTIVITY PROFITABILITY RETURNS TO SCALE RISK MANAGEMENT SAVINGS SCALE EFFECT SECURITIES SOLVENCY STATE BANKS STATE OWNED BANKS STRUCTURAL ADJUSTMENT TIME SERIES TRANSITION ECONOMIES Denizer, Cevdet A. Dinc, Mustafa Tarimcilar, Murat Measuring Banking Efficiency in the Pre- and Post-Liberalization Environment : Evidence from the Turkish Banking System
geographic_facet	Europe and Central Asia Turkey
relation	Policy Research Working Paper;No. 2476
description	The authors examine banking efficiency before and after liberalization, drawing on Turkey's experience. They also investigate the scale effect on efficiency by type of ownership. Their findings suggest that liberalization programs were followed by an observable decline in efficiency, not an improvement. During the study period Turkish banks did not operate at the optimum scale. Another unexpected result was that efficiency was no different between state-owned and privately owned banks. Banks that were privately owned or foreign owned had been expected to respond better to liberalization, because they were smaller and more dynamically structured, but they were no more efficient than state-owned banks. One reason for the systemwide decline in efficiency might have been the general increase in macroeconomic instability during the period studied.
format	Publications & Research :: Policy Research Working Paper
author	Denizer, Cevdet A. Dinc, Mustafa Tarimcilar, Murat
author_facet	Denizer, Cevdet A. Dinc, Mustafa Tarimcilar, Murat
author_sort	Denizer, Cevdet A.
title	Measuring Banking Efficiency in the Pre- and Post-Liberalization Environment : Evidence from the Turkish Banking System
title_short	Measuring Banking Efficiency in the Pre- and Post-Liberalization Environment : Evidence from the Turkish Banking System
title_full	Measuring Banking Efficiency in the Pre- and Post-Liberalization Environment : Evidence from the Turkish Banking System
title_fullStr	Measuring Banking Efficiency in the Pre- and Post-Liberalization Environment : Evidence from the Turkish Banking System
title_full_unstemmed	Measuring Banking Efficiency in the Pre- and Post-Liberalization Environment : Evidence from the Turkish Banking System
title_sort	measuring banking efficiency in the pre- and post-liberalization environment : evidence from the turkish banking system
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2000/11/717463/measuring-banking-efficiency-pre--post-liberalization-environment-evidence-turkish-banking-system http://hdl.handle.net/10986/19767
_version_	1764440589742374912

Measuring Banking Efficiency in the Pre- and Post-Liberalization Environment : Evidence from the Turkish Banking System

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