Internal determinants of bank profitability: Evidience from Turkish banking sector

dc.authorscopusid53864481500
dc.authorscopusid57194061648
dc.contributor.authorTopak, Mehmet Sabri
dc.contributor.authorTalu, Nimet Hülya
dc.date.accessioned2024-09-11T19:57:41Z
dc.date.available2024-09-11T19:57:41Z
dc.date.issued2016
dc.departmentİstanbul Gelişim Üniversitesien_US
dc.description.abstractThe aim of this paper is to explore the factors affecting the profitability of Turkish commercial banks during the period from January 2006 to March 2014. Some of these are internal factors controllable by the management. Others are external, such as macroeconomic and sector specific conditions outside the control of management. This study has focused on the bank specific factors. Using quarterly data from the unconsolidated financial statements of the 12 commercial banks in the BIST Banks Index, a balanced panel data set has been constructed to which the Swamy’s Random Coefficients Model has been employed. Two models have been used with ROA and ROE as dependent variables. According to the general results, the ratios of net fees and commissons to total expenses and interest from loans to interest on deposits have positive effect on ROA and ROE. The ratio of other operating expenses to total operating income and size represented by the natural logarithm of total assets, have been found to have a negative impact on profitability. The ratio of equity and long term subordinated loans to total assets has a positive impact on ROA but has been found insignificant in explaining ROE. Based on the results on individual banks, the ratio of other expenses to total operating income has been found to have a negative impact on both ROA and ROE in each of the 12 banks. Interest from loans to interest on deposits ratio has a positive impact on ROA and ROE in 11 banks. © International Economic Society.en_US
dc.identifier.endpage49en_US
dc.identifier.issn1307-1637en_US
dc.identifier.issue1en_US
dc.identifier.scopus2-s2.0-85018504909en_US
dc.identifier.scopusqualityN/Aen_US
dc.identifier.startpage37en_US
dc.identifier.urihttps://hdl.handle.net/11363/8334
dc.identifier.volume10en_US
dc.indekslendigikaynakScopusen_US
dc.language.isoenen_US
dc.publisherInternational Economic Societyen_US
dc.relation.ispartofInternational Journal of Economic Perspectivesen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/closedAccessen_US
dc.snmz20240903_Gen_US
dc.subjectBank profitability; Borsa Istanbul; Financial ratios; Performance; Swamy’s RCM; Turkish banking Sectoren_US
dc.titleInternal determinants of bank profitability: Evidience from Turkish banking sectoren_US
dc.typeArticleen_US

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