The efficiency of participation and conventional banks in turkey: Using data envelopment analysis

Abstract

The comparison of performances of participation banks operating through profit and loss sharing (PLS) paradigm with conventional banks is a matter of discussion in international literature. This study analyzes the efficiencies of 26 private conventional banks and 4 participation banks in 2006 and 2009 through the data envelopment analysis (DEA) method. The DEA results reveal that while 3 out of 10 banks, identified inefficient in 2006, were participation banks, in 2009, only 1 out of 11 banks, identified inefficient, was a participation bank