DETERMINANTS OF BANK PROFITABILITY: EVIDENCE FROM LISTED AND NON-LISTED BANKS IN TURKEY

Year 2017, Volume: 4 Issue: 4, 404 - 416, 30.12.2017

Murat Belke , Esra Aydin Unal

https://doi.org/10.17261/Pressacademia.2017.750

Abstract

Purpose - The aim of
this study is to determine the bank-specific, sector-specific and macroeconomic
factors that affect the profitability of 23 deposit banks in Turkey.

Methodology-
in this study, we employ panel regression analyzes as well as mean and
median tests. Our study using quarterly data covering the period 2005Q1-2015Q4
is divided into two groups: listed banks and non-listed banks.

Findings- According to
the results of the mean and median tests, there are significant differences
between the listed banks and non-listed banks in terms of bank-specific
variables. Regression results also indicate that the bank profitability is
significantly affected by the variables such as bank size, bank capital,
liquidity risk, economic growth, inflation, policy rate, exchange rate, and
market concentration.

Conclusion- When our
results are evaluated in general, it could be said that the factors affecting
profitability significantly differ according to whether the banks are traded at
the Borsa Istanbul. 

Keywords

Turkish banking sector, deposit banks, determinants of profitability, Borsa Istanbul, Turkey

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