Efficiency of Participation and Conventional Banks: Evidence from Turkey

Abstract

Measuring efficiency is a critical stage for decision making processes. Although previous studies show many aspects of Islamic banks that outperform conventional banks, this research investigates the most current evidence from banking sector. The purpose of the present study is to measure the efficiency of participation banks and conventional banks in Turkey. Data Envelopment Analysis (DEA) is used as a tool to measure the efficiency of sample data for the period from 2015 to 2018 on the annual basis. Results indicated that participation banks show better performance than those of conventional banks in terms of efficiency.