Banking Regulation and Determinants of Banks’ Profits: Empirical Evidence from Turkey
The crises that are frequently observed in the banking industries of emerging markets which affect banks’ profits necessitate regulations and supervision of these markets. This paper investigates the determinants of Turkish banks’ profits and the effects of the regulations implemented in this ind...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Ala-Too International University
2016-05-01
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| Series: | Eurasian Journal of Business and Economics |
| Subjects: | |
| Online Access: | http://www.ejbe.org/EJBE2016Vol09No17p109ERDOGAN-AKSOY.pdf |
| Summary: | The crises that are frequently observed in the banking industries of emerging
markets which affect banks’ profits necessitate regulations and supervision of these
markets. This paper investigates the determinants of Turkish banks’ profits and the
effects of the regulations implemented in this industry on profits. In this research,
468 firm year observations for 36 Turkish banks for the period 1995-2007 were used
and analyzed with Prais-Winsten regression method. The empirical findings of the
study show positive and statistically significant relations between capital, size, offbalance
sheet transactions, liquidity and loans and performance and negative and
statistically significant relations between quality of loans, concentration and
performance. |
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| ISSN: | 1694-5948 1694-5972 |