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If bank capital matters, then how? The effect of bank capital on profitability of Turkish banks during the recent financial crisis

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  • Alisher Akhmedjonov
  • Berna Balci Izgi

Abstract

The goal of this study is to examine if higher bank capital resulted in higher profitability of Turkish banks before and during the recent (2008-2009) financial crisis. Using the ordinary least squares, fixed effects and generalized method of moment estimator techniques, we find that higher bank capital had positive effects on bank profitability at all times, and the effect was more pronounced during the financial crisis.

Suggested Citation

  • Alisher Akhmedjonov & Berna Balci Izgi, 2015. "If bank capital matters, then how? The effect of bank capital on profitability of Turkish banks during the recent financial crisis," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 8(1-2), pages 160-166, July.
    • Handle: RePEc:taf:macfem:v:8:y:2015:i:1-2:p:160-166
    DOI: 10.1080/17520843.2014.940988
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    References listed on IDEAS

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    5. Pasiouras, Fotios & Kosmidou, Kyriaki, 2007. "Factors influencing the profitability of domestic and foreign commercial banks in the European Union," Research in International Business and Finance, Elsevier, vol. 21(2), pages 222-237, June.
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