Dynamics of bank profitability: Evidence from Turkey

Download

1123-7235-2-PB.pdf

Date

2021-6-31

Author

Saniç, Yusuf Halit
Şendeniz Yüncü, İlkay

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

126
views

60
downloads

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

Suggestions

OpenMETU
Core

EFFECTS OF EXCHANGE RATE VOLATILITY AND FIRM-SPECIFIC FEATURES ON THE RATES OF RETURNS OF THE MANUFACTURING FIRMS LISTED IN BORSA İSTANBUL: A CAPM APPROACH Aslan, Mustafa; Gaygısız Lajunen, Esma; Department of Financial Mathematics (2021-8-04) This study examines the effects of the exchange rate volatility and the firm-specific features representing the liquidity, profitability, and leverage performance of firms on excess stock returns for the manufacturing firms listed in Borsa İstanbul (BIST) using dynamic panel data model. The exchange rate volatility is modeled by single regime generalized autoregressive conditional heteroscedasticity (GARCH) models and Markov-switching GARCH (MSGARCH) models. The MSGARCH models show evidence that the evoluti...
Influence of networks on systemic risk within banking system of Turkey Özdemir, Özge; Günel Kılıç, Banu; Department of Information Systems (2015) Within the Turkish banking system, systemic risk, which is defined as the propagation of a financial collapse occurred in one or more institutions to other institutions as a consequence of interconnectedness, has been examined with network analysis via the capital and liquidity channel of interbank system over the period from January 2009 to October 2014. Financial shocks of individual and multiple bank failures are simulated to measure the fragility and effectiveness of banks and peer groups. Simulation re...
Analyzing the profit efficiency of the Turkish banking sector after the BRSA restructuring program in 2001: an empirical study using stochastic frontier approach between the years of 2002-2009 Hatunoğlu, Hande; Akbostancı Özkazanç, Elif; Department of Economics (2012) This thesis analyzes the profit efficiency of the Turkish banking sector after the restructuring program by using Stochastic Frontier Approach. 28 banks are included in the analysis and the data belongs to the period 2002-2009. Profit efficiency scores of 28 banks are estimated by SFA. When the efficiency scores are analyzed according to the ownership status, profit efficiency scores of the state owned banks are found higher than other bank groups. Moreover, according to the asset size, large scale banks’ p...
Effects of Dollarization on Bank Performance: Analysis for Turkey IŞIK, SENA; Şendeniz Yüncü, İlkay (2022-03-01) Dollarization has significant effects on the real sector, monetary policy, and financial system. In this study, the effects of dollarization on banks’ performance in Turkey for the period of 2012-2017 are investigated by using both static and dynamic panel data analyses. Our Generalized Method of Moments (GMM) results indicate the statistical significance of the negative impact of deposit dollarization on return on assets (ROA). Both the random effects regression and GMM results show a negative and signific...
Measuring cost efficiency of Turkish commercial banks : a stochastic frontier approach Güneş, Hakan; Yıldırım Kasap, Dilem; Department of Economics (2013) This study examines cost efficiency of Turkish commercial banks through a stochastic frontier approach where the inefficiency effects are approximated by a set of bank-specific variables. Empirical results reveal that intermediation ratio, deposits divided by liabilities and labor per branch are the main determinants of the inefficiency of Turkish commercial banks. Moreover, it is observed that cost efficiency of all commercial banks has an upward trend until 2008 and it takes 10 quarters to recover from th...

Citation Formats

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.