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Examining the Relationship between Bankassurance and Profitability in Banks with High Premium Production: The Case of Türkiye

Author

Listed:
  • Hakan OZCAN
  • Ali CELIK
  • Tayfun TIMURAY

Abstract

Approximately ¼ of the premium production made by insurance companies in Turkey originates from banks. In today's banking system, profit consists not only of loans granted but also of commission income from other banking activities. In this study, it is aimed to determine to what extent selected insurance variables such as life, motor insurance and personal accident premium production affect the net profit margin of the 5 banks with the highest insurance premium production in Turkey, within the scope of the years between 2013 and 2023. According to the robust panel estimation results obtained in this direction, while other factors are constant, it is concluded that a 1% increase in motor insurance premium production will increase the net profit of banks by 0.65%, while a 1% increase in life premium production will increase the net profit of banks by 0.53% has been reached.

Suggested Citation

  • Hakan OZCAN & Ali CELIK & Tayfun TIMURAY, 2023. "Examining the Relationship between Bankassurance and Profitability in Banks with High Premium Production: The Case of Türkiye," Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency, vol. 17(2), pages 153-164.
    • Handle: RePEc:bdd:journl:v:17:y:2023:i:2:p:153-164
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    More about this item

    Keywords

    Insurance; Banking; Profitability; Panel Data Analysis;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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