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Efficiency Analysis of the Banks Operating in Turkey with AHP based on DEA Method

Author

Listed:
  • Adem Babacan

    (Sivas Cumhuriyet Universitesi, Sivas, Turkey)

  • Sahin Bulut

    (Aydin Adnan Menderes Universitesi, Aydin, Turkey)

  • Neslihan Koc

    (Hitit Universitesi, Corum, Turkey)

Abstract

In this study, performance and its basic concepts, efficiency, and productivity, are explained and performance measurement methods are discussed. The Analytical Hierarchy Process (AHP) was used to measure efficiency in multi-criteria problems and to determine the weights of criteria for efficiency measurement. With the help of the Data Envelopment Analysis (DEA), which is one of the best methods of measurement of efficiency, efficiency levels of the banks in Turkey, whose data can be fully reached, was evaluated. The criteria for bank efficiency were weighted with the AHP and then the efficiency scores of the banks were determined using the Weighted DEA method. Potential improvements have been proposed for inefficient banks.

Suggested Citation

  • Adem Babacan & Sahin Bulut & Neslihan Koc, 2020. "Efficiency Analysis of the Banks Operating in Turkey with AHP based on DEA Method," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(55), pages 882-882, August.
    • Handle: RePEc:aes:amfeco:v:22:y:2020:i:55:p:882
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    References listed on IDEAS

    as
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    3. A. Charnes & W. W. Cooper, 1962. "Programming with linear fractional functionals," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 9(3‐4), pages 181-186, September.
    4. Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-598, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    performance; efficiency; Data Envelopment Analysis (DEA); Analytical Hierarchy Process (AHP); efficiency of banks in Turkey.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling

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