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Journals / Balıkesir Üniversitesi Sosyal Bilimler Enstitüsü Dergisi / 2020 / Cilt: 23 - Sayı: 43

Analyzing Efficiency with Undesirable Output: An Analysis on the Turkish Banking Sector

İSTENMEYEN ÇIKTI ALTINDA ETKİNLİK ANALİZİ: TÜRK BANKACILIK SEKTÖRÜ ÜZERİNE BİR ANALİZ

Ramazan EKİNCİ
Pages
199–228
Publication Date
2020-06-30
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The truncated regression results also support the results obtained.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:The aim of this study is to analyze the effect of non-performing loans (NPLs), which are considered as undesirable outputs, on banks' efficiency level.
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Key Findings & Data:The sample of the study consists of the period of 2011-2018 and 21 deposit banks operating in the Turkish banking sector.
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Conclusion & Impact:The truncated regression results also support the results obtained.
🔬Design:Modeling & Simulation
📍Scope:2011-2018 Verileri
⚙️Variables:Efficiency · Non-Performing Loans · Directional Distance Function

Abstract

The aim of this study is to analyze the effect of non-performing loans (NPLs), which are considered as undesirable outputs, on banks' efficiency level. In the study, risk-adjusted efficiency scores of each bank are estimated with a new approach by using directional distance functions. Thus, the effect of undesirable output on the bank's efficiency scores is determined internally. Furthermore, within the framework of sensitivity analysis, the effect of non-performing loans on bank efficiency scores is externally tested by using the Simar-Wilson truncated bootstrap regression model. The sample of the study consists of the period of 2011-2018 and 21 deposit banks operating in the Turkish banking sector. The findings show that risk-adjusted efficiency scores, including non-performing loans, are lower than traditional efficiency scores. This result means that undesirable output has a negative effect on banks' efficiency scores. The truncated regression results also support the results obtained.

Özet

Bu çalışmanın amacı istenmeyen çıktı olarak değerlendirilen takipteki kredilerin (NPLs) bankaların etkinlik düzeyi üzerindeki etkisini analiz etmektir. Çalışmada her bir bankaya ait riske-uyarlanmış etkinlik skorları yönlü uzaklık fonksiyonları kullanılarak yeni bir yaklaşımla hesaplanmaktadır. Böylece istenmeyen çıktının bankanın etkinlik skorları üzerindeki etkisi içsel olarak belirlenmektedir. Ayrıca duyarlılık analizleri çerçevesinde Simar-Wilson kesikli bootstrap regresyon modeli kullanılarak takipteki kredilerin banka etkinlik skorları üzerindeki etkisi dışsal olarak test edilmektedir. Çalışmanın örneklemi 2011-2018 dönemi ve Türk bankacılık sektöründe faaliyet gösteren 21 mevduat bankasından oluşmaktadır. Elde edilen bulgular, takipteki kredilerin dahil edildiği riske-uyarlanmış etkinlik skorlarının geleneksel etkinlik skorlarından daha düşük olduğunu göstermektedir. Bu sonuç istenmeyen çıktının bankaların etkinlik skorları üzerinde negatif etkisinin olduğu anlamına gelmektedir. Tahmin edilen kesikli regresyon modeli sonuçları da ulaşılan sonuçları desteklemektedir.

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Cite This Article

EKİNCİ, R. (2020). Analyzing Efficiency with Undesirable Output: An Analysis on the Turkish Banking Sector. Balıkesir Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, Cilt: 23 - Sayı: 43, 199–228. https://ajindex.com/articles/95807

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