Turkish Banking Sector’s Profitability Factors

Songül Kakilli ACARAVCI; Ahmet Ertuğrul ÇALIM

Article Details

Turkish Banking Sector’s Profitability Factors

Authors:

Songül Kakilli ACARAVCI | Ahmet Ertuğrul ÇALIM

Publisher:

İlhan ÖZTÜRK

Journal:

International Journal of Economics and Financial Issues 2013 Vol.3 Issue 1, pp.27-41

Document Type:

Article

Publication Date:

2/2013

Document Language:

Turkish

Document ID (Org No.):

2000814728

Frequency:

Bimonthly

eISSN:

2146-4138

Abstract:

 

The profitability of banking sector is the most important instrument of financial system
 for the future of the economy. The objective of this study is to determine by using Johansen and
 Juselius cointegration test approach of the bank specific and macroeconomic factors that affect the
 profitability of commercial banks in Turkish banking sector. In study, the data are collected from the
 three biggest state-owned, privately-owned and foreign banks. The sample period spans from 1998 to
 2011. In the study, return of asset, return of equity and net interest margin were used as proxy for
 profitability of banks. The bank specific determinants, which were thought to have effects on
 profitability are total credits/total assets, total deposits/total assets, total liquid assets/total assets, total
 wage and commission incomes/ total assets, total wage and commission expenses/total assets, the
 logarithm of total assets and total equity/total assets. The macroeconomic determinants of study are
 real gross domestic product, inflation rate, real exchange rate and real interest rate. Empirical findings
 suggest that the bank specific determinants have been more effect than macroeconomic factors on
 profitability of the banks. The reel gross domestic product and real exchange rate have been effective
 on the profitability. In addition, the 2001 economic crisis has a negative effect on all Turkish Banking
 sector.

Article Details

Turkish Banking Sector’s Profitability Factors

Authors: Songül Kakilli ACARAVCI | Ahmet Ertuğrul ÇALIM

Publisher: İlhan ÖZTÜRK

Journal: International Journal of Economics and Financial Issues 2013 Vol.3 Issue 1, pp.27-41

Document Type: Article

Publication Date: 2/2013

Document Language: Turkish

Document ID (Org No.): 2000814728

Frequency: Bimonthly

eISSN: 2146-4138

Issues

Authors:

Songül Kakilli ACARAVCI | Ahmet Ertuğrul ÇALIM

Publisher:

İlhan ÖZTÜRK

Journal:

International Journal of Economics and Financial Issues 2013 Vol.3 Issue 1, pp.27-41

Document Type:

Article

Publication Date:

2/2013

Document Language:

Turkish

Document ID (Org No.):

2000814728

Frequency:

Bimonthly

eISSN:

2146-4138