Developing a hybrid analytics approach to measure the efficiency of deposit banks

DİNÇER H., Hacioglu U., Tatoglu E., Delen D.

Journal of Business Research, vol.104, pp.131-145, 2019 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 104
  • Publication Date: 2019
  • Doi Number: 10.1016/j.jbusres.2019.06.035
  • Journal Name: Journal of Business Research
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.131-145
  • Keywords: Fuzzy analytic network process, Data envelopment analysis, Efficiency, Banking performance, Emerging markets, Borsa Istanbul
  • Istanbul Medipol University Affiliated: Yes

Abstract

This study aims at analyzing the efficiency of deposit banks using contemporary analytics-based decision-making techniques within a fuzzy environment. Specifically, a hybrid analytic model drawing on a fuzzy analytical network process and data envelopment analysis was developed and applied to the assessment of Turkish deposit banks quoted on Borsa Istanbul. The findings revealed that; (i) the efficiency results for banking activity vary for competitiveness and for the adoption of new technologies before and after the financial recession; (ii) the majority of deposit banks operating primarily with non-interest based factors found to be less-efficient; (iii) the ownership and capital structure of banks do not significantly contribute to their banking performance, as they were technically inefficient during the same period; and (iv) the inputs of the banking activities could be reduced while a constant level of output is maintained by adopting and properly using the most efficient technology to boost the technical efficiency.