KREDİ KULLANDIRMA ETKİNLİĞİ VE SERMAYE YETERLİLİĞİ ARASINDAKİ ETKİLEŞİM ÜZERİNE AMPİRİK TESPİTLER: 2013-2019 DÖNEMİ TÜRKİYE ÖRNEĞİ

Abstract

This paper primarily aims to explore the causal relationship between lending efficiency and capital adequacy through panel cointegration analysis and regression. The effects on that relationship of both such specific financial variables as total asset value and the volume of hedging transactions and two additional categorical variables separating the banks as state-owned versus privately owned and as foreign versus domestic are also investigated. It is further debated whether the duration of operating in the sector significantly influences the assumed efficiency-capital adequacy relationship. For this purpose, panel cointegration tests have been conducted on and some cointegration models have been constructed for the quarterly data of 13 deposit banks in Turkey for the 2013-2019 period. The panel cointegration test results suggest a significant cointegration only from banks’ lending efficiency scores calculated via Data Envelopment Analysis to their capital adequacy ratios. The panel cointegration regression models provide some evidence that capital adeqaucy is positively affected by lending efficiency. Furthermore, there exists no connection between total asset value (size) and relative capital adequacy performance. However, it is evident that more engagement in hedging transactions improves the bank’s capital adequacy performance. The state-owned and privately owned banks are not superior to one another in terms of efficient-based capital adequacy performance while the domestic banks outperform the foreign banks. Finally, no significant association is conluded between the duration of operation and relative capital adequacy performance.