Assessing the Adverse Effects of Interbank Funds on Bank Efficiency Through Using Semiparametric and Nonparametric Methods

Financial Services: Efficiency and Risk Management (Studies in Financial Optimization and Risk Management). Eds: Meryem Duygun Fethi, Chrysovalantis Gaganis, Fotios Pasiouras, Constantin Zopounidis. Nova Science Pub Inc, 2011

37 Pages Posted: 2 Apr 2018

See all articles by Ahmet Faruk Aysan

Ahmet Faruk Aysan

Bogazici University

Gurdal Ertek

Abu Dhabi University; Sabanci University - Sabanci University; Sabanci University

Secil Ozturk

Çanakkale Onsekiz Mart University

Date Written: March 28, 2018

Abstract

This chapter investigates the relationship between interbank funds and efficiencies for the commercial banks operating in Turkey between 2001 and 2006. Data Envelopment Analysis (DEA) is executed to find the efficiency scores of the banks for each year, and fixed effects panel data regression is carried out, with the efficiency scores being the response variable. It is observed that interbank funds (ratio) has negative effects on bank efficiency, while bank capitalization and loan ratio have positive, and profitability has insignificant effects. This chapter serves as novel evidence that interbank funds can have adverse effects in an emerging market.

Keywords: urkish Banking Sector; Interbank Funds; Data Envelopment Analysis; Efficiency; Panel Regression; Cluster Analysis, Two Step Procedure

JEL Classification: C14, C67, G21

Suggested Citation

Aysan, Ahmet Faruk and Ertek, Gurdal and Ozturk, Secil, Assessing the Adverse Effects of Interbank Funds on Bank Efficiency Through Using Semiparametric and Nonparametric Methods (March 28, 2018). Financial Services: Efficiency and Risk Management (Studies in Financial Optimization and Risk Management). Eds: Meryem Duygun Fethi, Chrysovalantis Gaganis, Fotios Pasiouras, Constantin Zopounidis. Nova Science Pub Inc, 2011, Available at SSRN: https://ssrn.com/abstract=3151838

Ahmet Faruk Aysan

Bogazici University ( email )

Bebek, İstanbul 34342
Turkey

Gurdal Ertek (Contact Author)

Abu Dhabi University ( email )

Abu Dhabi
United Arab Emirates

HOME PAGE: http://ertekprojects.com

Sabanci University - Sabanci University ( email )

Orhanli
Estambul, Tuzla 34956
Turkey

Sabanci University ( email )

School of Management
Orhanli Tuzla
İstanbul, 34956
Turkey

Secil Ozturk

Çanakkale Onsekiz Mart University ( email )

Çanakkale, 17100
Turkey

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