TY  - JOUR
AB  - Purpose To investigate the effects of regulations, macroeconomic changes, and political events on the efficiency ofthe Turkish banks during the period 1997-2013, when crucial changes were experienced. To analyze the effects of an extensive set of bank-specific and environmental factors on the efficiency, since the diversions could not only be related to new regulations.Design/methodology/approach A two-stage procedure is employed. First, the productivity changes of each bank and of the whole sector are measured by a DEA-based Malmquist Productivity Index (DEA-MPI). Second, the effects of selected internal and external factors on productivity are analyzed with regression analysis. The sector is especially handled before and after 2001, when one of the most catastrophic crises is observed and moment after which a series of new regulations are implemented.Findings During the period 1997-2001, the efficiency deteriorated due to the 2001 crisis; after the crisis, an improvement was observed. All models indicate the source of improvements as efficiency instead of technological changes. Rather than external, internal factors seem to be more effective on productivity. Therefore, the importance of regulations for the soundness of banks, management quality and monitoring may be more crucial than what is thought. In general, a new macroeconomic environment, particularly new regulations, have positive effects on productivity. Tighter regulations, monitoring, restrictions, strong supervision, more capital, and new reforms have a positive impact on efficiency.Originality/value The study spans a wide period to analyze the sector using three different perspectives. It analyzes the effect of the 2001 financial crisis and subsequent regulations. It handles an extensive set of internal and external factors; and it tests each factor with nine different DEA-MPI models for consistency. Turkey's unique environmental factors, such as the unstable macroeconomic conditions, high inflation and a subsequent disinflation period, high interest rates, new regulations and crisis experience, among others, also make the study distinctive.
VL  - 8
IS  - 2
SN  - 1851-6599
DO  - 10.1108/JCC-08-02-2015-B003
UR  - https://doi.org/10.1108/JCC-08-02-2015-B003
AU  - Kale Süleyman
AU  - Eken Mehmet Hasan
AU  - Selimler Hüseyin
PY  - 2015
Y1  - 2015/01/01
TI  - The Effects of Regulations on the Performance of Banks: Evidence from the Turkish Banking Industry
T2  - Journal of Centrum Cathedra: The Business and Economics Research Journal
PB  - Emerald Group Publishing Limited
SP  - 109
EP  - 145
Y2  - 2024/04/25
ER  -