Turkish Deposit Banks Research Articles

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

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.

The determinants of green finance and effect on the banking sector

Abstract This study examines the prerequisites and challenges faced by local and foreign commercial banks in Türkiye in supporting green business initiatives. This study uses backward logistic regression analysis to identify variables affecting green financing practices using annual data from Turkish deposit banks from 2012 to 2021. This study addresses the growing interest in understanding the role of commercial banks in promoting green finance and contributes to the existing literature by revealing the current efforts of Turkish commercial banks in this area. The main findings show that factors influencing green financing practices are derivative financial assets, loans, tangible assets, equity capital, company size, female representation on boards, presence of audit committees and company experience. The study highlights the relationship between these factors and green financing methods adopted by depository banks. It is worth noting that the assets of these banks were built within the framework of green financing and practices such as green buildings, green loans and green bonds were introduced. In addition, the size and experience of custodian banks help influence their green financing practices. The findings provide a framework for policy makers, practitioners and academics who wish to gain a deeper understanding of the dynamics of Turkish financial institutions and green finance.

Effects of Off-Balance Sheet Items on the Financial Performance of Turkish Deposit Banks

Effects of Off-Balance Sheet Items on the Financial Performance of Turkish Deposit Banks

Basel II öncesi ve sonrası dönemde sermaye yeterliliğinin Türk mevduat bankalarının kârlılığı üzerindeki etkisi

The aim of this study is to analyze the effect of capital adequacy of Turkish deposit banks on their profitability (ROA). For this purpose, panel data regression analysis was carried out using quarterly data for the period 2007Q4-2020Q3. Capital adequacy ratio (CAR) and the ratio of equity to assets (capital ratio) were used as an indicator of capital adequacy. In addition to these variables, bank-specific and macroeconomic control variables, which have an effect on bank performance, are also added to the model. According to the results, CAR and capital ratio have a positive effect on ROA of banks. In addition, in order to see the effect of the Basel II implementation, the analysis was made under two periods, before and after the implementation of Basel II by Turkish banks. For both periods, the effect of CAR on the profitability was positive at the 5% significance level. Also, a positive and stronger relationship was found between the capital ratio and ROA in the post-Basel II period. This result shows that strong equity structure contributes to high profitability.

Does It Matter How to Fund?: A Research on Turkish Deposit Banks

The Aim of this paper is to examine the possible relationship between liability structure and bank performance. In this context, panel data regression method is used to analyze relationship between bank performance and liability structure of banks. The main data source in this study is The Banks Association of Turkey’s banking statistics between 2005-2018. In the analysis, liability preferences of Turkish banks are used as independent variables and CAMELS performance scores of banks are used as dependent variable. Additionally, variables that are admitted in literature as bank performance determinants are taken into consideration in bank performance model as control variables. According to the results, the banks’ performance is affected by several liability structure variables. Use of loans-especially long term loans- and to have high saving deposits/total deposits positively affect bank performance; while extensive use of non-deposit liabilities, third alternative liability sources, long-term deposits, and foreign currency loansnegatively affect bank performance. As with other liability structure variables, high capital adequacy ratio and leverage also have negative effect on bank performance. Moreover, as control variables GDP per capita, inflation rate, interest rate, bank size, bank efficiency, bank liquidity, bank risk and bank market share have a statistically significant effect on bank performance.

An Analysis of Turkish Deposit Banks’ Customer Forecasting with Machine Learning Methods

Bankalar, sektördeki pazar paylarını artırmak için pazarlama faaliyetlerini mevcut müşteriyi koruma ve yeni müşteri kazanma konusunda genişletmişlerdir. Çalışmanın amacı, müşteri sayısı tahmininin önemini vurgulamak ve müşteri sayısı tahmini belirlemede etkili olan etmenleri araştırmaktır. Çalışmada makine öğrenmesi yöntemlerinden yapay sinir ağları ve destek vektör makineleri kullanılmıştır. Çalışmada, Türk Bankacılık sektöründeki mevduat bankaların 2011-2020 dönemi aylık verileri kullanılarak şube sayısı, çalışan sayısı, toplam mevduat, toplam krediler gibi literatürde kullanılan değişkenler müşteri tahminini tespit etmede seçilmiştir. Analiz sonucunda, Türkiye’deki mevduat bankalarının müşteri sayısı tahminleri başarılı bir şekilde elde edilmiştir. Bu çalışmanın bankaların hizmet sunmayı hedeflediği hedef müşterileri belirleme aşamasında bankalara yol göstereceği düşünülmektedir.

The Determinants of Profitability Large-Scale and Small Scale Turkish Deposit Banks

This paper aims to explore the bank-specific and macroeconomic determinants of the banks’ profitability by dividing the Turkish deposit banks into large-scale and small-scale entities. For this purpose, panel data analysis was applied using a fixed effects model, based on quarterly data for the period from March 2009 to September 2020 for 24 deposit banks. Return on assets and return on equity are used as a measure of the banks’ profitability. According to the results, the determinants of profitability differ between large-scale banks and small-scale banks. With respect to the bank-specific determinants, the findings show that the equity/assets, deposits/assets and liquidity ratio have a significant impact on the profitability of large-scale banks, whereas they have no relationship with the profitability of small-scale banks. The profitability of large-scale banks is negatively affected by their asset quality ratios. On the other hand, while the ratio of loans to total assets has no impact on the profitability of small-scale banks, the non-performing loan ratio has a positive impact. While the asset size and income-expense ratios have positive and significant impacts on the profitability of small-scale banks, they exhibit no relationship with the profitability of large-scale banks. With regard to macroeconomic indicators, small-scale banks’ profitability is negatively affected by economic growth, whilst large-scale banks are not. This study is aimed to contribute to the literature by analysing the determinants of Turkish deposit banks’ profitability under the classification of large-scale and small-scale banks.

DEĞİŞİM DÖNEMLERİNDE MUHASEBEDE İHTİYATLILIK VE SÜRDÜRÜLEBİLİRLİK RAPORLAMASI: TÜRK BANKACILIK SEKTÖRÜNDEN KANITLAR

The study aims to examine accounting conservatism in the Turkish banking sector from two sides. These can be expressed as lending policies and sustainability reporting. We firstly investigate whether accounting conservatism improves the lending capacity of banks during crisis periods. We hypothesize that higher conditional conservatism could reduce the adverse effect of the financial crises on the banks' lending capacity. We test our predictions empirically through an unbalanced panel data of 32 Turkish deposit banks in 1999-2019. We secondly examine whether a bank’s engagement in sustainability performance and reporting reduces information asymmetry and leads to less demand for conservatism by outside stakeholders. We test whether a bank conditional conservatism changes or not after starting to report sustainability information. The results of our primary hypotheses are consistent with our predictions and complement and support existing evidence in the empirical literature. We find evidence of the positive impact of conditionally conservative accounting policies on the supply of bank loans. When we test our sustainability reporting hypotheses, incoherent with prior researches and our predictions, there is no significant relationship between sustainability reporting and the level of conservatism.

Bankalarda Etkinliğin Veri Zarflama Analizi ile Değerlendirilmesi: Türkiye deki Kamu, Özel ve Yabancı Sermayeli Bankalar Üzerine Karşılaştırmalı Bir Araştırma (Evaluating Banks Efficiency Using Data Envelopment Analysis: A Comparative Research on Public, Domestic Private and Foreign Banks in Turkey)

Purpose – To investigate the efficiency of deposit banks in Turkey and to compare their efficiency in terms of capital ownership. Design/methodology/approach – Data Envelopment Analysis method was applied in the research. Interest Expenses, Other Operating Expenses and Shareholders’Equity were selected as input variables while Interest Income and Fees and Commissions Income were used as outputs. The study consists of 12 deposit banks, including three state-owned, five privately-owned and four foreign-owned banks and it covers the 2010 - 2017 period. Findings – The average efficiency value of banks for the 2010-2017 operating period is 0.983. Average efficiency value is 0,987 in state-owned banks; 0.970 in private banks; 0.997 in foreign banks. The banks have on average 75 % operating efficiency in the periods covered by the study. This ratio is 84 % in foreign banks, 79 % in state-owned banks and 65 % in private banks. Discussion – The average efficiency value of the private banks group and the ratio of the number of periods in which operating effectiveness in the total number of periods is relatively lower than state-owned banks and foreign banks. This is caused by the fact that Turkiye Is Bankasi A.S. has low efficiency value and is technically ineffective in all periods covered in the study. When Turkiye Is Bankasi A.S is excluded from the analysis no significant findings were reached that can lead to a difference in the efficiency of Turkish deposit banks in terms of ownership structure.

Determining the relationship between stock return and financial performance: an analysis on Turkish deposit banks

Banks play a very important role in financial markets due to their intermediary function. The availability of financing to businesses and individuals, the prevalence of branches throughout the country as well as the preference status at the collection point as a result of the habits of savings holders, have made deposit banks more active among other financial institutions. Since the banking system affects the whole economy, their performance and their performance evaluation become important. Performance measurement can be defined as one of the most important issues in the financial field. In this study, the relationship between stock return and financial performance of Turkish deposit banks was examined via CRITIC method, TOPSIS method and Spearman’s rank correlation analysis for 2014–2018 periods. According to the results of the analysis, there is no statistically significant correlation between the stock return ranking and financial performance rankings of deposit banks in Turkey.

Analysis of Innovation Performance for Retail Banking Industry With the Hybrid Fuzzy Decision-Making Approach

This study aims to evaluate the innovation performance of the Turkish banking industry. For this purpose, eight different financial and nonfinancial criteria are identified as a result of literature review. Moreover, five biggest Turkish deposit banks are selected as alternatives. Interval type 2 fuzzy decision-making trial and evaluation laboratory (IT2 FDEMATEL) is taken into account to weight the dimensions. On the other side, to rank the alternatives, interval type 2 fuzzy Vise Kriterijumska Optimizacija I Kompromisno Resenje (IT2 FVIKOR) approach is considered. The findings show that market share and return on investment are the most important factors in the innovation performance of retail banking services. This situation gives information that the when banks are more successful in the market, they can make investment to the innovation more effectively. The main reason is that these banks have enough capacity to make this kind of investments. Thus, it is recommended that Turkish banks should first make an efficiency analysis to increase their profit margin so that their capacities can be improved. For this purpose, many different factors should be taken into account by Turkish banks, such as personnel competency and technological development. Within this scope, these banks should make financial analysis of the innovation effectively by generating a qualified team. However, necessary research and development activities should be conducted to reach this objective. Hence, it can be possible to minimize ineffective innovation for the banks.

Developing a hybrid analytics approach to measure the efficiency of deposit banks

This study aims at analyzing the efficiency of deposit banks using contemporary analytics-based decision-making techniques within a fuzzy environment. Specifically, a hybrid analytic model drawing on a fuzzy analytical network process and data envelopment analysis was developed and applied to the assessment of Turkish deposit banks quoted on Borsa Istanbul. The findings revealed that; (i) the efficiency results for banking activity vary for competitiveness and for the adoption of new technologies before and after the financial recession; (ii) the majority of deposit banks operating primarily with non-interest based factors found to be less-efficient; (iii) the ownership and capital structure of banks do not significantly contribute to their banking performance, as they were technically inefficient during the same period; and (iv) the inputs of the banking activities could be reduced while a constant level of output is maintained by adopting and properly using the most efficient technology to boost the technical efficiency.

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.

IMPROVED COMMON WEIGHT DEA-BASED DECISION APPROACH FOR ECONOMIC AND FINANCIAL PERFORMANCE ASSESSMENT

Economic and financial performance assessment possesses an important role for efficient usage of available resources. In this study, a novel common weight multiple criteria decision making (MCDM) approach based on data envelopment analysis (DEA) is presented to identify the best performing decision making unit (DMU) accounting for multiple inputs as well as multiple outputs. The robustness of the developed model, which provides a rank-order with enhanced discriminatory characteristics and improved weight dispersion, is illustrated by two case studies that aim to provide economic and financial performance assessment. The first study presents an evaluation of Morgan Stanley Capital International emerging markets, whereas the second case study ranks the Turkish deposit banks using the proposed methodology as well as providing a comparative evaluation with several other approaches addressed in earlier works. The results indicate that the introduced approach guarantees to identify the best performing DMU without including a discriminating parameter requiring an arbitrary step size value in model formulation while also achieving an improved weight dispersion for inputs and outputs.

The Effect of Credit Risk on Financial Performance of Deposit Banks In Turkey

The aim of this paper is to analyze the impact of credit risk on banks performance. The dataset consist of 26 commercial banks operating in Turkey between 2005 - 2017. The secondary data collected from the statistical report of the Banks Association of Turkey. Three panels’ data are considered respectively state-owned banks, privately-owned banks and foreign banks in order to compare banks according to their ownership structure. Return on Asset (ROA) and Return on Equity (ROE) were used as proxies for financial performance indicators while Non-Performing Loans (NPLs) was used as credit risk indicators. The estimation results showed that there is a negative relationship between credit risk and ROA as well as between credit risk and ROE. This result suggest that there is a relationship between credit risk management and profitability of Turkish deposit banks from the period of 2005 to 2017. Accordingly, banks should focus more on credit risk management, especially on the control and monitoring of non-performing loans. In addition, managers should focus more on modern credit risk management techniques.

Comparative Evaluation of BSC-Based New Service Development Competencies in Turkish Banking Sector with the Integrated Fuzzy Hybrid MCDM Using Content Analysis

The aim of this study is to evaluate new service development competencies in Turkish banking sector. Within this scope, 16 Turkish deposit banks are taken into the consideration. Additionally, balanced scorecard-based criteria are evaluated with the integrated hybrid multicriteria decision-making approach by using fuzzy analytic hierarchy process (AHP), fuzzy analytic network process (ANP) and fuzzy VIseKriterijumsa Optimizacija I Kompromisno Resenje methods. Moreover, this evaluation is performed by using both decision makers’ evaluations and content analysis. It is concluded that there is a significant difference in the results based on decision makers and content analysis. Foreign banks have the best performance in decision makers’ evaluation, whereas there are different banks in the first ranks of the content analysis. However, fuzzy AHP and fuzzy ANP give very similar results in ranking the banks according to the new service development competencies. Furthermore, no banking type in Turkey has any priority over the others in all analysis. Hence, a foreign bank has the best performance, whereas another foreign bank states on the last rank.

Digital banking impact on Turkish deposit banks performance

The technological developments in the banking sector have significant implications for banks and are dramatically changing the way retail banks conduct their business. Banks can invest in digital banking (DB) services either to acquire a strategic advantage or because doing so has become a strategic necessity. This study is organized to examine if DB service channels have any positive or negative impact on Turkish deposit banks’ performance. With this aim in mind, in the first stage of the proposed DEA model, physical assets are used. Then, in the second stage, DB service channels are added to see if they have any impact on banks’ performance. The results show that the banks are investing in DB services just to keep the competition as it is. In other words, they invest in DB services as a strategic necessity. DB services do not provide any strategic advantage to any banks in terms of financial performance or efficiency since the banks are already efficient. Investing in DB only helped to preserve their strategic positions. The Turkish deposit banking industry is very competitive and very profitable, and it is necessary to invest in DB services just to keep the competition as it is.

Multidimensional comprehensive corporate sustainability performance evaluation model: Evidence from an emerging market banking sector

Abstract Financial institutions' roles in sustainable development have been a hot topic in the literature. Nonetheless, related studies are still emerging and are rare for emerging markets. The purpose of this paper is to investigate multidimensional corporate sustainability practices and establish a corporate sustainability performance evaluation model for Turkish banks. According to the multiple dimensions of economic, environmental, and social governance and financial corporate sustainability, the Content Analysis and TOPSIS methods are utilized on the 12 sustainability reports published by four Turkish deposit banks from 2012 to 2014. The TOPSIS method has been employed for the comprehensive assessment by using the entropy weights of Turkish Banking Sector sustainability practices in order to overcome subjectivity. One of the significant contributions of this study is the combined use of the results of content analysis, entropy weights and TOPSIS. The performance scores for the dimensional base reveals that each bank has different performance scores in each year. Additionally, rather than having the highest score in one or more dimensions, improving performance in all dimensions provides a substantial contribution to the bank's overall score and ranking.

Comparing the performance of Turkish deposit banks by using DEMATEL, Grey Relational Analysis (GRA) and MOORA approaches

The purpose of the study is to measure the financial performance in Turkish banking sector and to combine the data mining with the multi-criteria decision-making methods. For this purpose, a text-mining process is applied to measure the pairwise comparison of the criteria and the results are used in the integrated models. DEMATEL-GRA and DEMATEL-MOORA are defined as two integrated models. The results show that integrated models give the coherent outcomes and the text-mining process could be adapted properly in the multi-criteria decision-making methods. It is also concluded that foreign banks have better performance in comparison with state and private banks.

Identifying the Factors Influence Turkish Deposit Banks to Join Corporate Social Responsibility Activities by Using Panel Probit Method

This study aims to determine the influencing factors of the banks to join corporate social responsibility activities. Within this scope, annual data of 23 deposit banks in Turkey for the periods between 2005 and 2015 was taken into the consideration. In addition to this situation, panel probit model was used in the analysis so as to achieve this objective. According to the results of the analysis, it was determined that there is a negative relationship between CSR activities and nonperforming loans ratio. This situation shows that banks do not prefer to make social responsibility activities in case of higher financial losses. In addition to this situation, it was also identified that there is a positive relationship between return on asset and corporate social responsibility activities of the banks. In other words, it can be understood that Turkish deposit banks, which have higher profitability, joint more CSR activities in comparison with others.