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Dynamics of bank profitability: Evidence from Turkey
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1123-7235-2-PB.pdf
Date
2021-6-31
Author
Saniç, Yusuf Halit
Şendeniz Yüncü, İlkay
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This study examines whether the capital adequacy ratio, which is calculated with risk- weighted assets, explains the bank profitability in Turkey, and whether profitability dynamics vary for different bank sizes. This paper also aims to examine the effects of international trade between the EU-28 and Turkey on bank profitability. Our bank profitability measures are; return on assets, return on equity, and net interest margin. Our results show evidence of a positive relationship between capital adequacy ratio and bank profitability. In addition, we observe that profitability dynamics differ for different bank sizes. We also document that openness to trade between EU-28 and Turkey has a positive and significant effect on bank profitability in Turkey.
Subject Keywords
Capital adequacy ratio
,
Bank profitability
,
Openness to trade
,
Turkish banking sector Jel classification: G21, M20
URI
http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/1123/520
https://hdl.handle.net/11511/92100
Journal
ODTÜ Gelişme Dergisi
Collections
Department of Business Administration, Article
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Y. H. Saniç and İ. Şendeniz Yüncü, “Dynamics of bank profitability: Evidence from Turkey,”
ODTÜ Gelişme Dergisi
, vol. 48, no. 1, pp. 57–76, 2021, Accessed: 00, 2021. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/1123/520.