Faculty Scholarship 1994 - Present

Performance Changes in Public, Private and Foreign Banks

With the help of a DEA-type Malmquist index approach, this paper examines productivity developments in public, private, and foreign banks operating in Turkey over the initial post-liberalization period. We mainly try to explore the contributions of technical change, efficiency change and scale change to productivity growth. The results indicate that all forms of banks benefited from the liberal environment. The major source of productivity gains is scale changes for domestic banks and technical progress for foreign banks. In terms of productivity growth, foreign banks strongly dominate domestic banks and the performance gap between public and private banks got narrowed.