Effects of Dollarization on Bank Performance: Analysis for Turkey

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10.17065-huniibf.929924-1740715.pdf

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2022-03-01

Author

IŞIK, SENA
Şendeniz Yüncü, İlkay

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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 significant effect of deposit dollarization on return on equity (ROE). On the credit dollarization side, while random effects regression results indicate a negative and significant impact of credit dollarization on ROA and one-step system GMM results indicate the negative effect of credit dollarization on ROE, the rest of our estimations do not show any significant effect of credit dollarization on bank performance

Subject Keywords

Dollarization, Bank Performance, Banking Sector

URI

http://dx.doi.org/10.17065/huniibf.929924
https://hdl.handle.net/11511/97058

Journal

Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi

DOI

https://doi.org/10.17065/huniibf.929924

Collections

Department of Business Administration, Article

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Citation Formats

S. IŞIK and İ. Şendeniz Yüncü, “Effects of Dollarization on Bank Performance: Analysis for Turkey,” Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, vol. 40, no. 1, pp. 58–86, 2022, Accessed: 00, 2022. [Online]. Available: http://dx.doi.org/10.17065/huniibf.929924.