Evaluating the Efficiency of Turkish Banking Sector Using Data Envelopment Analysis and Malmquist Productivity Index: Covid-19 Pandemic and After

Abstract

Covid-19 pandemic has created a deep crisis with social, cultural, economic, and political consequences all over the world. In this study, we used the Malmquist Total Factor Productivity Change Index (TFPCH) and Data Envelopment Analysis (DEA) methods to assess the efficiency and performance of banks during the Covid-19 pandemic and in the post-pandemic era. We performed the application for 17 banks in Türkiye of which data structure is suitable for analysis. For the analysis, data from 2019, the beginning of the Covid-19 epidemic, to 2022, when the epidemic almost ended, were used. The highest value of the general efficiency average of banks is 0.943 in 2020. 2020 is also the year with the highest number of effective banks with a total of 9 effective banks. The highest value of the TFPCH general average is 1.543 in the 2021-2022 period. It was determined that the state banks had the highest average efficiency percentage and the highest TFPCH average for the entire period of 2019-2022.