Global Advances in Business Studies
Vol. 5 No. 1 (2026): Global Advances in Business Studies (GABS)

Efficiency analysis of banks included in the BIST Banking Index

Yildirim, Hasan Hüseyin (Unknown)
Yildirim, Cevriye Yüksel (Unknown)
Rençber, Ömer Faruk (Unknown)



Article Info

Publish Date
24 Apr 2026

Abstract

In the globalized economy, the financial sector is a cornerstone of national economic stability. Within this sector, banks hold a predominant position, and their performance is critically linked to overall economic health. Given its substantial economic weight and deep interconnections with other industries, inefficiency in the banking sector can have significant repercussions. Therefore, measuring efficiency is paramount. Efficiency, defined as the effectiveness with which an institution achieves its predetermined goals, is often analyzed in banking using data envelopment analysis (DEA). This method not only measures the relative efficiency of banks but also provides a roadmap for underperforming ones to improve by identifying optimal resource allocation. By evaluating how effectively banks utilize their inputs to generate outputs, DEA highlights strengths and weaknesses, enabling more efficient operations and a stronger competitive position. This study employs DEA to investigate the efficiency of 10 banks listed on the BIST Bank Index from 2017 to 2023. The analysis uses the size of assets, number of employees, and revenues as input variables, while return on assets, return on equity, and net profit margin serve as the output variables. The results reveal distinct performance patterns: A group of banks, namely Akbank, Garanti Bank, İş Bank (C), and Yapı ve Kredi Bank, maintained a state of full efficiency throughout the entire 2017-2023 period; In contrast, Albaraka Türk and Şekerbank exhibited significant fluctuations in their efficiency scores over time; TSKB experienced a notable period of serious inefficiency, particularly in 2022. In conclusion, DEA serves as a vital analytical tool for the banking sector, offering clear insights into performance levels and providing actionable guidance for inefficient banks to enhance their operations.

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Journal Info

Abbrev

gabs

Publisher

Subject

Economics, Econometrics & Finance

Description

Global Advances in Business Studies (GABS) is an international, double-blind peer-reviewed, open-access journal published by Ifma Publishing. GABS aims to provide a valuable outlet for research on business-orientated themes and topics. It publishes articles of a multi-disciplinary and ...