IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-3-031-81532-4_3.html
   My bibliography  Save this book chapter

Analysis of the Effects of Inflation, Cash Ratio, and Credit Deposit Ratio on Bank Performance

Author

Listed:
  • Nilgun Karadayi

    (Baskent University)

Abstract

The purpose of this chapter is to investigate the effect of cash ratios and credit deposit ratios of private and public capital deposit banks operating in Turkey on the asset profitability of these banks. Panel data analysis was conducted using R-Studio Program with annual data covering the period 2012 and 2022. According to the analysis results, the effect of cash ratio and loan-to-deposit ratio on average asset profitability was found to be positive but statistically insignificant. The cash ratio and loan-to-deposit ratio are not a significant determinant of return on assets in Turkish banks. The effect of the inflation rate on average return on assets is positive and statistically significant. Cash ratio, loan-to-deposit ratio, and inflation rate simultaneously affect the bank’s performance. The impact of inflation on banks’ return on assets depends on their ability to manage the various challenges and opportunities presented by inflationary pressures. In an inflationary environment, operational efficiency, pricing strategies, as well as successful risk management are of great importance for banks to maintain or improve their asset profitability.

Suggested Citation

  • Nilgun Karadayi, 2025. "Analysis of the Effects of Inflation, Cash Ratio, and Credit Deposit Ratio on Bank Performance," Springer Proceedings in Business and Economics,, Springer.
    • Handle: RePEc:spr:prbchp:978-3-031-81532-4_3
    DOI: 10.1007/978-3-031-81532-4_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:prbchp:978-3-031-81532-4_3. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.