The Effects of 2001 Financial Crisis to the Productivity and Efficiency of Turkish Banking Sector

Banking sector which play a crucial role in the economy by intermediating the transfer of savings to productive investment opportunities is among the sectors that is affected deeply from a financial crises. Financial crises result in a shrinkage of the total amount of banks' intermediation facilities and therefore decrease the productivity and eficiency of banks. In this study the effects of 2001 Financial Crises to the productivity and efficiency of the Turkish banking sector is analysed. The Malmquist Total Factor Productivity Index, constructed using nonparametric linear programming methods, is employed for the analysis. Analysis showed that 2001 Financial Crises deeply negatively affected the productivity and efficiency of the Turkish banking sector