The effect of financial structures of deposit banks on their profitability in the Turkish banking sector
Abstract views: 27
/ 
PDF downloads: 30
DOI:
https://doi.org/10.70736/ijoess.571Keywords:
Panel data analysis, Turkish banking system, return on assetsAbstract
As the integration of the banking sector, one of the most important fundamental components of today's financial system, into the global economy has increased, it has become essential for it to achieve sustainable profitability. In this study, a comprehensive study was carried out in order to contribute to the literature by analyzing the profitability of the banking sector together with its financial structure ratios and macroeconomic determinants. For this purpose, the effect of the financial structures of deposit banks operating in Turkey on their profitability was investigated. In this context, quarterly financial statement data between 2007Q1-2024Q1 of 19 deposit banks, whose financial statement data were completely accessible and actively operating, were used. In the study where the panel data regression analysis method was used, it was first tested whether there was a relationship between different units. Then, the stationarity of the series was tested with unit root tests that take into account the cross-sectional dependency. Whether there was heteroscedasticity and autocorrelation in the series was tested with Durbin, Watson and Wald tests and the regression model was estimated. According to the analysis findings, a statistically significant relationship was determined between the dependent variables net interest margin, return on assets and return on equity, as well as non-interest income and credit share variables. On the other hand, no statistically significant relationship was observed between the capital ratio, deposit share and inflation rate variables and bank profitability.
References
Al-Homaidi E.A., Tabash M.I., Farhan N.H.S. & Almaqtari F.A. (2018). Bank-specific and macro-economic determinants of profitability of Indian commercial banks: A panel data approach. Cogent Economics & Finance, 6, 1–26. https://doi.org/10.1080/23322039.2018.1548072
Ayadi, N., & Boujelbène, Y. (2012). The determinants of the profitability of the Tunisian deposit banks. IBIMA Business Review, 1-21.
BDDK (2003). Bankacılık sektörü yeniden yapılandırma programı gelişme raporu- (VII), Ekim.
Behera J., & Mishra, A.K. (2020). Renewable and non-renewable energy consumption and economic growth in G7 countries: Evidence from panel autoregressive distributed lag (P-ARDL) model, IEEP 17(1), 241–258.
Belke, M., & Unal, E.A. (2017). Determinants of bank profitability: Evidence from listed and non-listed banks in Turkey. Journal of Economics Finance and Accounting, 4(4), 404-416.
Breusch, T., & Pagan, A.R. (1980). The LM test and its applications to model specification in econometrics. Review of Economic Studies, 47, 239-254.
Chen, S., & Liao, C. (2011). Are foreign banks more profitable than domestic banks? Home- and hostcountry effects of banking market structure, governance, and supervision. Journal of Banking and Finance, 35, 819-839.
Demirgüç¸-Kunt, A., & Huizinga, H. (1999). Determinants of commercial bank interest margins and profitability: Some international evidence. The World Bank Economic Review, 13(2), 379–408.
Dilmaç, M., Dikmen, A.T., & Keleş, Ş. (2015). Bankaların finansal yapılarının karlılıkları üzerine etkileri: Türk bankacılık sektörü üzerine bir uygulama (1998-2015). The International New Issues in Social Sciences (TINI-SOS), 1, 143-165.
Garcia-Herrero, A., Gavila, S., & Santabarbara, D. (2009). What explains the low profitability of Chinese banks? Journal of Banking & Finance, 33, 2080–2092.
Horobet, A., Radulescu, M., Belascu, L., & Dita, S.M. (2021). Determinants of bank profitability in CEE countries: Evidence from GMM panel data estimates. Journal of Risk and Finance Management, 14(7), 307-330. https://doi.org/10.3390/jrfm14070307
Işık, Ö., Koşaroğlu, Ş.M., & Demirci, A. (2018). The impact of size and growth decisions on Turkish banks’ profitability. International Journal of Economics and Financial Issues, 8(1), 21-29.
Javaid, S., Zaman, J., & Gaffor, A. (2011). Determinants of bank profitability in Pakistan: Internal factor analysis. Mediterranean Journal of Social Sciences, 2(1), 59-78.
Johnson, R.A., & Wichern, D.W. (2007). Applied multivariate statistical analysis. Pearson Prentice Hall.
Kahveci, E., Ekşi, İ.H., & Kaya, Z. (2016). Türkiye’deki mevduat bankalarında sermaye yapısı – karlılık ilişkisi: 2002 – 2014 yılları arası panel veri uygulama. Kastamonu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 12, 446-461.
Kakilli Acaravcı, S., & Çalım, A.E. (2013). Turkish banking sector's profitability factors. International Journal of Economics and Financial Issues, 3(1), 27–41.
Kalaycı, Ş. (2014). SPSS uygulamalı çok değişkenli istatistik teknikleri. Asil Yayın.
Kayran, O., & Kıyılar, M. (2021). Türkiye’deki mevduat bankalarına yönelik bir araştırma: Bankalarda gelir çeşitlendirilmesinin performans üzerine etkileri. Gümüşhane Üniversitesi Sosyal Bilimler Enstitüsü Elektronik Dergisi, 12(2), 419- 439.
Kılıç, M. (2019). Bankaların finansal yapısının karlılık üzerindeki etkisi: Özel sermayeli mevduat bankaları üzerine bir inceleme. Uluslararası İktisadi ve İdari İncelemeler Dergisi, (24), 45-58.
Kumar, R. (2014). Stock markets, derivatives markets, and foreign exchange markets. Academic Press, 125–164. https://doi.org/10.1016/B978-0-12-416997-5.00005-1
Kumbirai, M., & Webb, R. (2010). A financial ratio analysis of commercial bank performance in South Africa. African Review of Economics and Finance, 2(1), 30-53.
Maudos, J., & Fernández de Guevara, J. (2004). Factors explaining the interest margin in the banking sectors of the European Union. Journal of Banking and Finance, 28, 2259–2281.
Menicucci, E., & Paolucci, G. (2016). The determinants of bank profitability: Empirical evidence from European banking sector. Journal of Financial Reporting and Accounting, 14(1), 86–115.
Meta, F.E. (2022). Bankacılık sektöründe kârlılığı belirleyici faktörlerin incelenmesi: Panel veri analizi. Üçüncü Sektör Sosyal Ekonomi Dergisi, 57(2), 1133-1152.
Muraina, S.A. (2018). Determinants of listed deposit money banks profitability in Nigeria. International Journal of Finance and Banking Research, 4(3), 40-56.
Olaoye, F.O., & Olarewaju, O.M. (2015). Determinants of deposit money banks’ profitability in Nigeria. Arabian Journal of Business and Management Review 4(9), 11–18.
Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels. University of Cambridge Working Paper,
Pesaran, M.H. (2007). A simple panel unit root test in the presence of cross section dependence. Journal of Applied Econometrics, 22(2), 265-312.
Pesaran, M.H., Ullah, A., & Yamagata, T. (2008). A bias-adjusted LM test of error cross-section independence. The Econometrics Journal, 11(1), 105-127.
Peterson, M.A., & Schoeman, I. (2008). Modeling of banking profit via return-onassets and return-on-equity. Proceedings of the World Congress on Engineering, London, UK, 2, 1-6.
Rumler, F., & Waschiczek, W. (2010). The impact of economic factors on bank profits. Monetary Policy and the Economy, 4(10), 49-67.
Sarafidis, V., Yamagata, T., & Robertson, D. (2009). A test of cross section dependence for a linear dynamic panel model with regressors. Journal of Econometrics, 148(2), 149-161. https://doi.org/10.1016/j.jeconom.2008.10.006
Saunders, A., & Schumacher, L. (2000). The determinants of bank interest rate margins: an international study. Journal of International Money and Finance, 19, 813– 832.
Sinha, P., & Sharma, S. (2016). Determinants of bank profits and its persistence in Indian Banks: a study in a dynamic panel data framework. International Journal of System Assurance Engineering and Management, 7(1), 35-46.
Siraj K.K., & Pilla P.S. (2013). Efficiency of NPA management in Indian SCBs –a bank-group wise exploratory study. Journal of Applied Finance & Banking, 3(2), 123-137.
Tan, Y. (2014). Performance, risk and competition in the Chinese banking industry. Kidlington, Oxford: Chandos Publishing.
Yalçın, G. (2023) Türk bankacılık sektörü piyasa yapısı ile mevduat bankalarının kârlılıkları arasındaki ilişkinin incelenmesi (Yayın No.823746) [Yüksek lisans tezi, Tarsus Üniversitesi]. https://acikerisim.tarsus.edu.tr/xmlui/bitstream/handle/20.500.13099/262/823746.pdf?sequence=1&isAllowed=y
Yao, H., Haris, M., & Tariq, G. (2018). Profitability determinants of financial institutions: evidence from banks in Pakistan. International Journal of Financial Studies, 6(53), 1-28.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Mehmet Akarcay
This work is licensed under a Creative Commons Attribution 4.0 International License.
