An Empirical Application for Determining the Factors of Net Interest Margin of Turkish Deposit Banks

Abstract

This study aims to identify the factors influencing the net interest margin (NFM) based on micro variables within the Turkish deposit banking sector. Secondary data sources were utilized to gather the necessary data for the analysis. Descriptive design was chosen as the model for analysis, and NFM levels were initially grouped through clustering. During the analysis, NFM levels were examined across relevant periods and banks to determine where high and medium NFM levels were concentrated. Consequently, it was observed that LR, ROA, AQ, MO, SCL, MKDO, FVO, and MO, MKDO, and FVO levels significantly impact the NFM level, whereas ROA and AQ levels, along with the NFM level itself, exhibit a lower influence.