IDEAS home Printed from https://ideas.repec.org/a/ksp/journ4/v1y2014i1p3-8.html
   My bibliography  Save this article

Determinants of Bank Profitability in Turkey: An Empirical Analysis on Types of Banking from 2002 to 2012

Author

Listed:
  • Eþref Savaþ BAÞÇI
  • Öznur SAKINÇ

    (Hitit University, Turkey)

Abstract

In this study, we investigate the determinants of banking profitability related to their financial statements. One of the major aim of financial systems is to make stability over the financial companies. Well known financial companies are Banks. If Banks make more profitable works, it can provide better effect to sector as an efficiency. The profitability of banks are more important for financial systems. Because of a lot of factors may affect to the banks as a widely way. Some researchers may emphasize banks earnings how it can improve which internal and external forces. Main studies are focused on banks financial statements. Therefore it is important how can we analyse their financial statements for evaluating profitability. With this current emphasis on financial statements are very important to both managing future and making new decision to guide. In Turkey, during from 2002 to 2012 period, bank’s profitability approaches has been changed to new phenomenon. Because of regulative decisions and competitive market has to change profitability of banking sectors. Therefore banking sector profitability are substantial for Turkey which to understand the determinants of all types of banks. On the other hand, financial atmosphere give priority to above changes for evaluating their performances. Therefore many studies were analysed profitability with various methods like ratio analyses, predicting regression model, simulation methods and etc. Some learning from expert’s experiences are rely on use of panel comparison with others about same historical infrastructure. In this study we examines types of banks as follows: 3 banks in state-owned banks, 12 banks in Private banks, 6 banks in foreign banks which has a branches in Turkey. In total 21 banks and 3 types analyses with cross-sectional panel data method during the from 2002 to 2012 period. In this study, we obtained data from Income Statements and Balance Sheets. As a result of panel data regression are statistically significant which Interest Income / Total Income and Consumer Loan/Total Loan are highly important to estimate ROE than estimating ROA.

Suggested Citation

  • Eþref Savaþ BAÞÇI & Öznur SAKINÇ, 2014. "Determinants of Bank Profitability in Turkey: An Empirical Analysis on Types of Banking from 2002 to 2012," Journal of Social and Administrative Sciences, KSP Journals, vol. 1(1), pages 3-8, December.
    • Handle: RePEc:ksp:journ4:v:1:y:2014:i:1:p:3-8
    as

    Download full text from publisher

    File URL: http://www.kspjournals.org/index.php/JSAS/article/download/117/168
    Download Restriction: no
    File URL: http://www.kspjournals.org/index.php/JSAS/article/view/117
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Astrid Matthey, 2010. "Do public banks have a competitive advantage?," The European Journal of Finance, Taylor & Francis Journals, vol. 16(1), pages 45-55.
    2. Shobhna Gupta & Jasminal Kaur, 2014. "A Comparative Study of the Performance of Selected Indian Private and Public Sector Banks," The IUP Journal of Bank Management, IUP Publications, vol. 0(2), pages 64-83, May.
    3. Alexei Karas & Koen Schoors & Laurent Weill, 2010. "Are private banks more efficient than public banks?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(1), pages 209-244, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Weill, Laurent, 2011. "How corruption affects bank lending in Russia," Economic Systems, Elsevier, vol. 35(2), pages 230-243, June.
    2. Simone Auer & Emidio Cocozza & Andrea COlabella, 2016. "The financial systems in Russia and Turkey: recent developments and challenges," Questioni di Economia e Finanza (Occasional Papers) 358, Bank of Italy, Economic Research and International Relations Area.
    3. Nataliya G. Filatova, 2019. "Improving the Credit Rating of Loan Recipients Implementing Long-Term Investment Projects," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 4, pages 102-115, August.
    4. Psillaki, Maria & Mamatzakis, Emmanuel, 2017. "What drives bank performance in transitions economies? The impact of reforms and regulations," Research in International Business and Finance, Elsevier, vol. 39(PA), pages 578-594.
    5. repec:zbw:bofrdp:2011_005 is not listed on IDEAS
    6. Andrei Vernikov, 2014. "China and Russia: Institutional Coherence between the Banking Systems," UCL SSEES Economics and Business working paper series 130, UCL School of Slavonic and East European Studies (SSEES).
    7. Mamonov, Mikhail & Vernikov, Andrei, 2015. "Bank ownership and cost efficiency in Russia, revisited," BOFIT Discussion Papers 22/2015, Bank of Finland Institute for Emerging Economies (BOFIT).
    8. repec:zbw:bofitp:2018_005 is not listed on IDEAS
    9. Denis Davydov, 2018. "Does State Ownership of Banks Matter?," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 17(2), pages 250-285, August.
    10. Fungáčová, Zuzana & Poghosyan, Tigran, 2011. "Determinants of bank interest margins in Russia: Does bank ownership matter?," Economic Systems, Elsevier, vol. 35(4), pages 481-495.
    11. Olivier De Jonghe & Mustafa Disli & Koen Schoors, 2012. "Corporate Governance, Opaque Bank Activities, and Risk/Return Efficiency: Pre- and Post-Crisis Evidence from Turkey," Journal of Financial Services Research, Springer;Western Finance Association, vol. 41(1), pages 51-80, April.
    12. repec:zbw:bofitp:2015_022 is not listed on IDEAS
    13. Sanjib POHIT & Pradip BISWAS, 2016. "FDI in R&D in India: An Introspection," Turkish Economic Review, KSP Journals, vol. 3(3), pages 513-521, September.
    14. Le, Phuong Thanh & Harvie, Charles & Arjomandi, Amir & Borthwick, James, 2019. "Financial liberalisation, bank ownership type and performance in a transition economy: The case of Vietnam," Pacific-Basin Finance Journal, Elsevier, vol. 57(C).
    15. Zuzana Fungáčová & Laurent Weill & Mingming Zhou, 2017. "Bank Capital, Liquidity Creation and Deposit Insurance," Journal of Financial Services Research, Springer;Western Finance Association, vol. 51(1), pages 97-123, February.
    16. Vernikov, Andrei, 2011. "Government Banking in Russia: Magnitude and New Features," IWH Discussion Papers 13/2011, Halle Institute for Economic Research (IWH).
    17. repec:zbw:bofitp:2011_034 is not listed on IDEAS
    18. Belousova, Veronika & Karminsky, Alexander & Kozyr, Ilya, 2018. "Bank ownership and profit efficiency of Russian banks," BOFIT Discussion Papers 5/2018, Bank of Finland Institute for Emerging Economies (BOFIT).
    19. Belousova, V. & Kozyr, I., 2016. "How Do Macroeconomic Indicators Influence Banking Profitability in Russia?," Journal of the New Economic Association, New Economic Association, vol. 30(2), pages 77-103.
    20. Koen Schoors & Laurent Weill, 2020. "Politics and banking in Russia: the rise of Putin," Post-Soviet Affairs, Taylor & Francis Journals, vol. 36(5-6), pages 451-474, November.
    21. Mamonov, Mikhail & Vernikov, Andrei, 2017. "Bank ownership and cost efficiency: New empirical evidence from Russia," Economic Systems, Elsevier, vol. 41(2), pages 305-319.
    22. Fungáčová, Zuzana & Herrala, Risto & Weill, Laurent, 2013. "The influence of bank ownership on credit supply: Evidence from the recent financial crisis," Emerging Markets Review, Elsevier, vol. 15(C), pages 136-147.
    23. Mamonov, M., 2017. "The Regulation of Banks' Access to Credit Market under Imperfect Competition: the Effects on Banking System Stability Estimated," Journal of the New Economic Association, New Economic Association, vol. 33(1), pages 44-74.
    24. Raj Yadav, 2014. "Twenty Five Years of Russian Banking System," International Studies, , vol. 51(1-4), pages 101-117, January.

    More about this item

    Keywords

    Crisis; 2008 Economic Crisis in Turkey; Mutual Funds; Performance Measurement Methods;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • G2 - Financial Economics - - Financial Institutions and Services
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ksp:journ4:v:1:y:2014:i:1:p:3-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bilal KARGI (email available below). General contact details of provider: http://www.kspjournals.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.