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Determinants of Bank Profitability in Turkey : An Empirical Analysis on Types of Banking from 2002 to 2012
Esref Savas BASCI, Oznur SAKINC

Last modified: 2016-01-06

Abstract


In this study, we investigate the determinants of banking profitability related to their financial statements.  A profitable banking sector is better able effect to stability of the financial system. The profitability of a financial institution is affected by a lot of factors. These factors include elements internal to each financial institution and several important external forces shaping earnings performance. In this study we analyses effects from financial statements to their profitability of each types of banks. 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. It is therefore important to understand the determinants of banking sector profitability in Turkey between all types of banks. This is essentially important in the light of the above notable changes that have occurred in the operating environment of banks in Turkey. An overview of previous studies indicates various ways that profitability was examined. Some studies were country specific and few of them considered panel of countries reviewing the determinants of profitability. 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.


Keywords


Determinants of Banking Sector, Profitability, Turkey Banking Sector

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