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Capital Adequacy and Profitability Relationship for Foreign Deposit Banks in Turkey

Author

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  • Nilgün ACAR-BALAYLAR
  • Mehmet Ozan ÖZDEMİR

Abstract

In this study the relationship between profitability and the capital requirements was analysed for the foreign capital deposit banks in Turkey. Although there are many studies in the Turkish banking sector on profitability analysis, the studies on bank groups is limited. In this study the capital requirements and the profitability relationship for the foreign capital banks was analysed with data from 2004-2016 based on ARDL approach. The study concludes that there is a significant and positive relationship between the capital requirements and probability for foreign capital deposit banks in Turkey. Similar results were also found in our previous study on national capital deposit banks for the relationship between capital requirements and profitability.Classification-JEL:G21, F65. Keywords:Foreign Banks, Capital Requirements, ARDL.

Suggested Citation

  • Nilgün ACAR-BALAYLAR & Mehmet Ozan ÖZDEMİR, 2018. "Capital Adequacy and Profitability Relationship for Foreign Deposit Banks in Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(36).
    • Handle: RePEc:sos:sosjrn:180212
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    More about this item

    Keywords

    foreign banks; capital requirements; ardl.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance

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