Banks In Turkey Research Articles

A Closer Look Into the Characteristics of Fraudulent Card Transactions

Widespread use of Internet also had the substantial impact on the increase of the online card transactions especially with the beginning of the last decade. Along with the increase of online transactions, the worldwide banking sector was forced to deal with or to encounter an unforeseen number of fraudulent activities, yet. Hence, rule-based systems were designed to mark the high-risk transactions and let the experts to confirm the fraudulent nature of such transactions. As a countermeasure, static nature of rule-based systems were exploited by the latest attacks to go undetected. Thus, researchers aimed at designing adaptive fraud detection systems utilizing mainly machine learning techniques with the very recent application of deep learning. However, they were focused on detecting fraudulent activities but, to the best of our knowledge, none of them delved into the better understanding the characteristics of fraudulent card transactions in order to produce more resilient models. Therefore, in this study, we built the biggest data set ever used in a research, consisting of 4B non-fraud and 245K fraud transactions contributed to by the 35 banks in Turkey. Consequently, we introduce and examine the performance of profile-based fraud detection models, namely card-type based model, transaction characteristics based model, and amount-based model. Also, we made temporal and spatial analysis on our data set to show the robustness of the proposed models against aging and zero-day attacks.

Analysis of spiritual leadership and ethical climate for banking industry using an integrated IT2 fuzzy decision-making model

The study aims to propose a novel model to define the role of spiritual leadership on the ethical climate for the banking industry. There are mainly three different stages in this model. Firstly, the criteria of each factor are selected with correlation coefficients by considering the balanced scorecard (BSC)-based linguistic evaluations. After that, these criteria are weighted by using interval type-2 (IT2) fuzzy decision-making trial and evaluation laboratory (DEMATEL). The third and the final stage aims to rank 5 biggest banks of Turkey which are quoted in İstanbul Stock Exchange. Within this framework, IT2 fuzzy technique for order preference by similarity to ideal solution (TOPSIS) approach is considered. The findings demonstrate that the spiritual leadership has a significant influence on the ethical climate. Altruistic love is the most important spiritual leadership dimension to improve ethical climate in the organization. On the other side, it is also concluded that private banks in Turkey are the most successful with respect to the ethical climate. The results give an idea that spiritual leader contributes to the improvement of the ties of love and respect among employees. The main reason is that altruistic love improves the judgement and sensitivity competencies of the ethical so that employees tend to be working in a more ethical way.

AAOIFI Standartlarının Türkiye’deki Katılım Bankalarına Olası Etkileri

İslami Finansal Kuruluşlar için Muhasebe ve Denetim Kuruluşu’nun Kavramsal Çerçeve, Faizsiz Finans Muhasebe Rehberi ve 18 adet standart Kamu Gözetimi Kurumu tarafından Türkçe’ye çevrilerek Resmî Gazete’de yayınlanmıştır. 01.01.2020 tarihinden itibaren ihtiyari olarak uygulanabilecek standartların Türkiye’deki Katılım Bankalarına etkilerini ele almak adına ülkemizde uygulanan muhasebe standart metinleri ile karşılaştırılmıştır. AAOIFI standartlarını benimseyen yabancı bir katılım bankası ile ülkemizde faaliyet gösteren bir katılım bankasının finansal tabloları karşılaştırılmıştır. Katılım ve mevduat bankalarının kullanması zorunlu hesap planı üzerinden de karşılaştırma yapılmış, farklar ortaya konmuştur. Ayrıca düzenlenen finansal tablolarda yer alan ana kalemlerin karşılaştırılmasına yer verilmiştir. AAOIFI standartlarının ülkemizde uygulanması ile ek finansal tabloların düzenlenmesi, zekât uygulaması, niteliksel özellikler ve muhasebe varsayımlarında ilave hususlar, krediler kalemi yerine islami bankacılığa özgü kalemlerin eklenmesi söz konusu olacaktır.

İslami Muhasebe Standartlarının Türkiye deki Katılım Bankalarında Uygulanabilirliği: Bir Alan Araştırması1 (The Applicability of the Islamic Accounting Standards in the Participation Banks in Turkey: A Field Study)

Purpose – This study aims to reveal the applicability of the Islamic accounting standards for interest-free finance institutions by issued Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in the participation banks in Turkey. Design/methodology/approach – For the purpose of the study, a questionnaire study is applied for the employees in the accounting and financial reporting units of the interest-free banks in Turkey. While in the first part of the questionnaire consisting of two main parts in general demographic characteristics and Islamic accounting awareness levels of the participants, undesirable situations before application and desired conditions after the application for the implementation of Islamic accounting standards in Turkey are included in the second part. SPSS statistic program was used to make difference analysis based on by considering the awareness situation of participants. Findings – According to the questionnaire results, it was found that approximately 58% of the participants did not have knowledge about AAOIFI and Islamic accounting. There is no meaningful difference between awareness situation of participants. Discussion – According to these findings, it is necessary to organize training activities on accounting standards in compliance with AAOIFI and Islamic principles for employees working in accounting and financial reporting units of participation banks. On the other hand, according to their level of awareness of the participants it is the lack of any significant difference between the answers they gave to questions, It show that the application of AAOIFI and/or Islamic accounting standards In Turkey is not depending on the level of knowledge of participants.

Development of Participation Banking and A Causality Analysis on the Participation Banks in Turkey

Bu çalışmada, Türkiye’de faaliyet göstermekte olan 3 faizsiz bankanın ortalama kâr payı oranları ile geleneksel bankaların faiz oranları ve enflasyon arasındaki ilişkinin varlığı ve yönü eşbütünleşme ve nedensellik analizleri ile araştırılmıştır. İlk aşamada Johansen eşbütünleşme analizi, ardından Granger ve Toda-Yamamoto (1995) nedensellik analizleri yapılmıştır. Yapılan ekonometrik analizlerde; 1, 3, 6 ve 12 ay vadeli kâr payı, faiz oranları ve enflasyon arasında uzun dönemli bir ilişki olduğu bulgusuna ulaşılmıştır. Her iki nedensellik analizinin sonucu, faiz oranlarından kâr payı oranlarına doğru tek taraflı nedensellik ilişkisi bulunduğuna işaret etmektedir. Çalışmada yer alan katılım bankalarının getiri oranlarının, geleneksel bankaların faiz oranları tarafından belirlendiği tespit edilmiştir.

CREDIT RISK MANAGEMENT A COMPARATIVE STUDY BETWEEN ISLAMIC AND CONVENTIONAL BANKS IN TURKEY.

This study aims to identify variables which determine credit risk in Islamic and Conventional banks. Panel data fixed effect model employed to analyze which belongs to three Islamic Banks in Turkey for the period 2008 Q1 to 2017 Q4. While for conventional banks, previous studies that has been conducted in Turkey used to compare Islamic to Conventional banks (CB). Non-performing Loans (NPL) ratio was used as a proxy for credit risk. Result from fixed effect model showed that NPL in Islamic Banks is positively affected by Loan Loss Provision and Proportion of Loans to Deposits, and it is negatively affected by Assets Size. While literature showed that conventional bank’s credit risk is positively affected by Net Interest Margin, Loan Loss Provision, and Capital Adequacy Ratio and it is negatively affected by Proportion of Loan to Deposits, Proportion of Loans to Assets and Size. There were clear differences between both Islamic and Conventional banks related to all variables of study except Loan Loss Provision and Proportion of Loan to Assets ratios.

Exchange Rate Risk in Participation (Islamic) Banks in Turkey

Exchange Rate Risk in Participation (Islamic) Banks in Turkey

Exchange Rate Risk Management in Participation (Islamic) and Conventional Banks in Turkey: A Comparative Study

Exchange Rate Risk Management in Participation (Islamic) and Conventional Banks in Turkey: A Comparative Study

The effect of service quality and customer satisfaction on customer loyalty

PurposeThe purpose of this paper is to investigate the impact of customer satisfaction, service quality, the perceived value of services, corporate image and corporate reputation on customer loyalty and their relationship in the Turkish banking industry. Mediation effects of the perceived value and corporate image and reputation are also studied. Understanding the relationships between the determinants of customer loyalty toward the bank helps management to use corporate image and reputation more effectively in its strategy, thus enhancing the institution’s position in the minds of consumers.Design/methodology/approachA model is proposed to explore the relationships of service quality and customer satisfaction with a perceived value and their effect on transforming the corporate image and corporate reputation into the form of customer loyalty toward the bank. A survey is designed within this framework and SEM analysis is conducted in order to study the nature of relationships between variables of interest hypothesized to affect customer behavior and customer loyalty. Mediation tests for perceived value and corporate image and reputation are also conducted.FindingsThe findings of the survey indicate that corporate image and corporate reputation can be used as a common marketing benchmark to measure a bank’s performance. The results demonstrated that customers perceive quality and satisfaction effects loyalty through perceived value, image and reputation.Research limitations/implicationsThe study was conducted in Izmir, the third biggest city of Turkey. The sample is composed of regular customers, and the sample size is enough for the study but more studies are needed to generalize the results.Practical implicationsThe results provide information to bank managers to effectively assist them to offer appropriate customer service levels sustaining satisfaction, quality and value to the customers within the transactions.Originality/valueThe paper studies the determinants of customer loyalty in the Turkish banking industry and considers the effects of corporate image and corporate reputation as measured by customer satisfaction, service quality and perceived value, on customer loyalty toward banks in Turkey. This model is not studied in bank marketing in Turkey and also in the banking literature.

An Evaluation on Carbon Footprint Indicators in Turkey Located Banks and Worldwide Banks

Global warming has become one of the most critical issues in the recent years. There is a great debate, centered on greenhouse gas emissions of countries, companies, and institutions. Not only the manufacturing sector but also service sector has begun to be questioned in terms of the need for controlling greenhouse gases. Thus, banks deserve an attention on the basis of sustainability and environmental impact. Besides the operational activities of this enormous sector, its investing and lending choices have considerable influence on sustainability. The carbon footprint measurement indicators have to be standardized in order to estimate the contributions of the banks in the global climate change precisely. In this study, carbon footprint measurement indicators, extracted from the sustainability reports and/or websites of the banks in Turkey are examined. The findings have been comparatively discussed with the measurements used by the international banks and addressed in the literature.

Informal Breast Milk Sharing in a Muslim Country: The Frequency, Practice, Risk Perception, and Risk Reduction Strategies Used by Mothers.

Introduction: Turkey is the first and only Islamic country which has initiated a process to establish a milk bank. However, the effort was abandoned because of religious concerns. Informal breast milk sharing has become a practical alternative to some. Research Aims: To document the religious concerned views and attitudes toward breast milk sharing and to determine risk reduction strategies of mothers in an Islamic country. Materials and Methods: Participants comprised volunteers from relevant forums or members of social media groups on the Internet. The participants (n = 435) were divided into three groups: those who did not share milk (n = 371), donors (n = 48), and receivers (n = 16). A prepared questionnaire was used for each group as a data collection tool. Results: 14.7% of the participants were experienced in informal milk sharing. Seventy-five percent of the recipients and 85.4% of the donors did not enter into a written agreement. Religious rules on milk sharing were reflected in three ways: asking about the infant's gender, limiting the number of sharing parties to 3, and knowing the identity of the donor or recipient. Of the participants, 77.3% believed that it was necessary to establish a milk bank in Turkey. However, 19.5% of the respondents reported that they would not feed their infant with donor milk because of reasons related to the issue of "milk kinship" in Islam. Conclusions: Informal milk sharing is a reality and risks similar to those stated in the literature are undertaken. Milk sharing is frequently performed independent of religious concerns and commercial purposes, Comprehensive measures to minimize disease transmission are not routinely implemented.

Yönetim Kurulu Üyelerinin ve Yönetim Kurulu Özelliklerinin Türkiye’de Banka Performansı Üzerine Etkisi

This study analyzes the effect of board member’s characteristics (political, national and gender) and board characteristics (board size, CEO-chairman duality) on bank performance, with the main attention being on the political board directors, in Turkey. By making use of a sample of 31 commercial banks in Turkey, during the period of 2002-2013, our empirical evidence shows that political board directors have a significantly negative impact on bank performance. We found new evidence that not only political board directors inhibit bank performance, but politically connected banks also have less accounting performance than their nonconnected counterparts. Similarly, our results indicate that foreign board directors also affect negatively bankperformance. Furthermore, our results demonstrate that gender diversity, board size and CEO-Chairman duality has no impact on bank performance. Our results are robust to the alternative time-period and estimation models.

TÜRKİYE’DEKİ KAMUSAL SERMAYELİ MEVDUAT BANKALARININ KARŞILAŞTIRMALI FİNANSAL ANALİZİ

Finansal tablolar, bankaların taşıdıkları riskler, karlılıkları, likiditeleri ve verimlilikleri gibi çok geniş bir alanda bilgiler sağlayarak finansal performansın incelenmesine imkân sağlamaktadır. Bu çalışmada, Türkiye’deki kamu sermayeli mevduat bankalarının Türkiye Varlık Fonu’na (TVF) devredilmeden önceki finansal yapı ve faaliyet sonuçları analiz edilmiştir. Bu doğrultuda, 2010-2016 yıllarını kapsayacak şekilde Halkbank, Vakıfbank ve Ziraat Bankası’na ait finansal durum ve gelir tablolarının yatay, dikey ve oran analizleri yapılmıştır. Ayrıca oran analizinin bulguları Bankacılık Denetleme ve Düzenleme Kurumu (BDDK) bankacılık sektörü interaktif bülteninden alınan Türkiye ortalamaları ile karşılaştırılmıştır. Araştırma sonucunda, kamu bankalarının mevcut finansal yapılarıyla ve sahip oldukları potansiyeller ile fona finansal katkılar sağlayacağı görülmüştür. Ancak, aktif karlılık bakımından üç kamu bankasının da Türkiye ortalamasının altında kalması, finansal kaldıraç oranlarının yüksek olması ve takipteki alacakların nakit kredilere oranında Halkbank ve Vakıfbank’ın yüksek orana sahip olması dikkat edilmesi gereken hususlar olarak tespit edilmiştir.

Traces of the Multifractal Nature of the Financial Crises in Turkey: Co-Movement of the Hölder Exponents and Large-Scale Forecast

This paper investigates the multifractal behavior of the probability of default (PD) of real sector firms and Turkey sovereign credit default swap (CDS). Moreover, we emphasize the co-movements of Hölder exponents during the financial crisis periods. For this reason, first, it is necessary to figure out the default probabilities of real sector firms. The default probability is evaluated weekly by the methodology of Moody’s Analytics, which is a commonly used approach, in which the market value of a firm is a call option written on its total assets. Multifractal detrended fluctuation analysis (MF-DFA), multifractal detrended cross-correlation analysis (MF-DCCA) and multifractal detrended moving average cross-correlation analysis (MF-X-DMA) techniques are applied to identify the multifractal behavior of the large-scale fluctuations of PDs and CDSs. In this way, we can evaluate the local Hurst exponents. Besides, the oscillation method is employed to estimate the pointwise and local Hölder exponents. In the period between January 2001 and March 2018, the structure of dynamic co-movements of Hölder exponents is determined by applying wavelet coherency methodology and the relations in crisis period are revealed. The selected period covers the crises with structural differences: Turkey banking crisis, the US sub-prime mortgage crisis and the European sovereign debt crisis that occurred in 2001, 2008 and 2009, respectively. Besides, during the periods of financial crises, among the local Hölder exponents, severely correlated large scales show multifractal features, and hence vector fractionally autoregressive integrated moving average (VFARIMA) forecasting provides better results than scalar models.

Analysis of balanced scorecard-based SERVQUAL criteria based on hesitant decision-making approaches

The measurement of quality of services has an important influence in the companies’ competence, being even more relevant in the banking sector because of the high competition to keep and attract customers. Due to this fact, this paper proposes a balanced scorecard based SERVQUAL to rank competitors in the banking sector. The analysis will deal with hesitant fuzzy information that models the hesitancy of the experts involved. This analysis will be applied for weighting criteria and dimensions, ranking alternatives and different results that will define the Turkish banking sector. Its main goal is to show that banks should be more willing to help and support their customers to increase the quality of their services. Therefor the analysis aims at showing which is the most relevant factor in the balanced scorecard based-SERVQUAL dimensions according to the correlation coefficient? It also aims at providing a clear view about what type of actions should take banks to be closer to the customers. Additionally, it will be identified which is the importance of the different dimensions of the approach? Eventually the main conclusions obtained from the analysis will be detailed regarding the quality services offered by banks in Turkey and different recommendations will be elicited to increase the banks performance in service quality according to the criteria and dimensions emphasized in this study.

Corporate social responsibility of Islamic and conventional banks

PurposeThe purpose of this paper is to compare the sustainability practices of Islamic and conventional banks, with the aim of evaluating whether their Corporate Social Responsibility (CSR) strategies converge or diverge in response to formal and informal institutions in an emerging country.Design/methodology/approachDrawing on institutional theory, this study contextualizes the competitive scenario through the National Business System (NBS) framework, and showcases the CSR strategies employed by large conventional and Islamic banks in Turkey. CSR patterns are examined from different angles such as motivations, strategy, actions and institutional results.FindingsWithin the same institutional environment, Islamic and non-Islamic banks combine convergent and divergent models to accommodate institutional realities in their CSR policies. Islamic banks exhibit an implicit commitment to CSR that is mostly based on informal institutions, whereas conventional banks use explicit CSR strategies as a means to fill the voids in formal institutions. In addition, philanthropy-oriented CSR prevails in Islamic banks, as opposed to the CSR actions associated with core business that are followed by conventional banks.Social implicationsAn increased focus on formal institutions and explicit CSR actions by Islamic banks may further contribute to social well-being in emerging countries.Originality/valueThis study contributes to the paucity of research, from an institutional perspective, related to CSR practices amongst Islamic and conventional banks in emerging countries.

Financial Performance of Islamic Banks in Turkey and the United Kingdom: A Comparative Study

Islamic banks are financial institutions just like conventional banks. However, Islamic banks do not deal with interest and are based on participation. These institutions raise funds and employ them within the scope of Islamic (Shariah) principles where the bank and the depositor share the business, thus sharing the profits and losses. This paper focuses on making a comparative between three Islamic banks in Turkey and five Islamic banks in the United Kingdom in terms of financial performance. More so, it aims to investigate whether or not Islamic banks in Turkey are more profitable, less risky, liquid, operationally efficient, and have a good management quality compared to the Islamic banks in UK. The time span used in this study is one period. The period is four years from 2013 until 2016. Our study used time series data (pooled Least Squares) (PLS) as panel regression on nine financial ratios (CAMEL) to examine the financial performance of these banks according to their profitability, Capital adequacy, Asset quality (riskiness and solvency), Management quality, Earning diversification (operationally efficient), and Liquidity. However, our results are insignificant for UK and significant in Turkey in terms of asset quality and management quality.

Examining service innovation competencies of Turkish deposit banks with fuzzy ANP, fuzzy TOPSIS and fuzzy VIKOR methods

It is aimed to rank the service innovation issues of deposit banks in Turkey. In this context, 26 deposit banks of Turkey are analyzed by considering 16 different balanced scorecard-based criteria. Regarding the methodology, first of all, fuzzy ANP method is used to measure the significance of dimensions and criteria. It is defined that the most significant dimension is performance. It is also seen that organizational compliance (D3) is on the last rank. Additionally, return on investment (C1), profitability (C2) and customer expectations (C5) have highest significance. These alternatives are ranked by considering fuzzy TOPSIS and fuzzy VIKOR methods. It is understood that the results of both these two methods are very similar. It is concluded that there is not a comparative advantage among the banks regarding the ownership type. For example, the best bank (F15) is a foreign bank whereas the worst bank (F13) is also another foreign bank. Similar to this situation, some private banks (P1, P7, P8) have successful performance while some others (P4, P5) have weak performance.

Can Capital Structure Affect the Financial Performance of Banks in Turkey?

<p>The aim of this study is to investigate the determinants of banks’ financial performance in terms of the capital structure. Annual financial statements of 11 banks traded in Borsa Istanbul are employed for the period of 2006-2016. Return on assets, return on equity and earnings per share are chosen for financial performance measures. The independent variables related to the capital structure are capital adequacy, equity-to-asset, and financial leverage ratios. In addition, macroeconomic variables and bank-specific variables are also considered as control variables for the analysis. The data are analyzed by the panel data regression analysis as it provides more informative finding and less multicollinearity among variables than time series and cross-sectional analyzes.</p><p>The Hausman test results indicate that the random effects model is appropriate for the whole dependent variables. According to the findings; while equity-to-asset ratio affects return on assets positively, amongst the control variables specific to firms, firm size, asset quality and asset growth variables have significant effects on return on assets. It is found no significant effect of independent variables on return on equity, however, it is seen that asset quality has a negative and significant effect. Inflation and interest rates have a significant effect on both variables. Finally, it is seen that equity-to-asset ratio has a positive and significant effect on earnings per share. Only the effect of asset quality on earnings per share is found to be significant among the control variables. Findings of the study are consistent with the previous studies. In addition, the M&M views are not supported by the findings related to return on assets and earnings per share but the return on equity.</p>

A Hybrid Process Mining Approach for Business Processes in Financial Organizations

Business process management is an integral part of many organizations in doing their day-to-day business operations considering that they help organizations transfer their business critical information from one organizational entity to another in the form of automated state transitions. The data (or event logs) that have been generated during these transitions hold valuable insights for improving organizational business processes, highlighting problem areas and visualizing the actual vs the formal procedures. The goal of this paper is to summarize the development of a hybrid analytical approach that utilizes both SQL and NO-SQL based back-end platforms in harmony in order to carry out process mining for a participation bank in Turkey. For this purpose, first we have developed a hybrid analytical software infrastructure that is backed by MS SQL Server and Hadoop platform components in order to discover key business processes of the organization based on event data. We then established a process mining framework that visualizes the process performance indicators and proposes workflow design changes and carries out statistical tests for identifying performance fluctuations by particularly using an in-memory parallel processing framework, named Apache Spark.