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.
Keywords
Panel data analysis,Turkish banking system,return on assets
How to Cite
Akarcay, M. (2025). The effect of financial structures of deposit banks on their profitability in the Turkish banking sector. International Journal of Eurasia Social Sciences, 16(59), 361–384. https://doi.org/10.70736/ijoess.571
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