Influencing Factors of Net Interest Margin in Turkish Banking Sector
The aim of this paper is to define the influencing factors of net interest margin in Turkish banking sector. Within this scope, the effects of 14 explanatory variables on net interest margin were analyzed. Moreover, quarterly data for the period between 2003 and 2014 was used in this study. After t...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2017-01-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/3235 |
| _version_ | 1797907357320085504 |
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| author | Serhat Yuksel Sinemis Zengin |
| author_facet | Serhat Yuksel Sinemis Zengin |
| author_sort | Serhat Yuksel |
| collection | DOAJ |
| description |
The aim of this paper is to define the influencing factors of net interest margin in Turkish banking sector. Within this scope, the effects of 14 explanatory variables on net interest margin were analyzed. Moreover, quarterly data for the period between 2003 and 2014 was used in this study. After that, we created a model by using MARS method so as to illustrate the relationship. The major finding in this study is that net interest margin is negatively related with non-interest income, non-performing loans, total assets and exchange rates. According to these results, it was determined that banks should focus on the quality of the assets in order to increase net interest margin. In addition to this situation, volatility in exchange rates should also be taken into the consideration by the banks for this situation.
Keywords: Banking; Net Interest Margin; MARS; Turkey
JEL Classifications: E43, G2, G21, O16
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| first_indexed | 2024-04-10T10:35:29Z |
| format | Article |
| id | doaj.art-53f56b294e044462a2780a0665d2ccca |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:35:29Z |
| publishDate | 2017-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-53f56b294e044462a2780a0665d2ccca2023-02-15T16:20:51ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-01-0171Influencing Factors of Net Interest Margin in Turkish Banking SectorSerhat Yuksel0Sinemis ZenginKonya Food and Agriculture University The aim of this paper is to define the influencing factors of net interest margin in Turkish banking sector. Within this scope, the effects of 14 explanatory variables on net interest margin were analyzed. Moreover, quarterly data for the period between 2003 and 2014 was used in this study. After that, we created a model by using MARS method so as to illustrate the relationship. The major finding in this study is that net interest margin is negatively related with non-interest income, non-performing loans, total assets and exchange rates. According to these results, it was determined that banks should focus on the quality of the assets in order to increase net interest margin. In addition to this situation, volatility in exchange rates should also be taken into the consideration by the banks for this situation. Keywords: Banking; Net Interest Margin; MARS; Turkey JEL Classifications: E43, G2, G21, O16 https://www.econjournals.com/index.php/ijefi/article/view/3235 |
| spellingShingle | Serhat Yuksel Sinemis Zengin Influencing Factors of Net Interest Margin in Turkish Banking Sector International Journal of Economics and Financial Issues |
| title | Influencing Factors of Net Interest Margin in Turkish Banking Sector |
| title_full | Influencing Factors of Net Interest Margin in Turkish Banking Sector |
| title_fullStr | Influencing Factors of Net Interest Margin in Turkish Banking Sector |
| title_full_unstemmed | Influencing Factors of Net Interest Margin in Turkish Banking Sector |
| title_short | Influencing Factors of Net Interest Margin in Turkish Banking Sector |
| title_sort | influencing factors of net interest margin in turkish banking sector |
| url | https://www.econjournals.com/index.php/ijefi/article/view/3235 |
| work_keys_str_mv | AT serhatyuksel influencingfactorsofnetinterestmargininturkishbankingsector AT sinemiszengin influencingfactorsofnetinterestmargininturkishbankingsector |