The Effect of Credit and Market Risk on Bank Performance: Evidence from Turkey

Volume: 6 Number: 2 April 1, 2016
  • Aykut Ekinci
International Journal of Economics and Financial Issues Cover
International Journal of Economics and Financial Issues
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The Effect of Credit and Market Risk on Bank Performance: Evidence from Turkey

Abstract

There is a strong connection between bank performance and economic growth. Therefore, understanding on the effects of credit and market risk on bank performance could contribute to the better functioning of the banking system. This study investigates the effects of credit and market risk, i.e. interest rate and foreign exchange rate risk, on the bank performance for the Turkish Banking sector in a time-varying framework employing the GARCH approach for the 18.01.2002-30.10.2015 period by using weekly data. The results suggest two main findings: (i) credit risk and foreign exchange rate have a positive and significant effect, but interest rate has insignificant effect on banking sector profitability, (ii) credit and market risk have a positive and significant effect on conditional bank stock return volatility.

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Primary Language

English

Subjects

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Journal Section

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Authors

Aykut Ekinci This is me

Publication Date

April 1, 2016

Submission Date

April 1, 2016

Acceptance Date

-

Published in Issue

Year 2016 Volume: 6 Number: 2

IZ

https://izlik.org/JA59UL64GC

Cite

RIS / Bibtex
APA
Ekinci, A. (2016). The Effect of Credit and Market Risk on Bank Performance: Evidence from Turkey. International Journal of Economics and Financial Issues, 6(2), 427-434. https://izlik.org/JA59UL64GC
AMA
1.Ekinci A. The Effect of Credit and Market Risk on Bank Performance: Evidence from Turkey. IJEFI. 2016;6(2):427-434. https://izlik.org/JA59UL64GC
Chicago
Ekinci, Aykut. 2016. “The Effect of Credit and Market Risk on Bank Performance: Evidence from Turkey”. International Journal of Economics and Financial Issues 6 (2): 427-34. https://izlik.org/JA59UL64GC.
EndNote
Ekinci A (April 1, 2016) The Effect of Credit and Market Risk on Bank Performance: Evidence from Turkey. International Journal of Economics and Financial Issues 6 2 427–434.
IEEE
[1]A. Ekinci, “The Effect of Credit and Market Risk on Bank Performance: Evidence from Turkey”, IJEFI, vol. 6, no. 2, pp. 427–434, Apr. 2016, [Online]. Available: https://izlik.org/JA59UL64GC
ISNAD
Ekinci, Aykut. “The Effect of Credit and Market Risk on Bank Performance: Evidence from Turkey”. International Journal of Economics and Financial Issues 6/2 (April 1, 2016): 427-434. https://izlik.org/JA59UL64GC.
JAMA
1.Ekinci A. The Effect of Credit and Market Risk on Bank Performance: Evidence from Turkey. IJEFI. 2016;6:427–434.
MLA
Ekinci, Aykut. “The Effect of Credit and Market Risk on Bank Performance: Evidence from Turkey”. International Journal of Economics and Financial Issues, vol. 6, no. 2, Apr. 2016, pp. 427-34, https://izlik.org/JA59UL64GC.
Vancouver
1.Aykut Ekinci. The Effect of Credit and Market Risk on Bank Performance: Evidence from Turkey. IJEFI [Internet]. 2016 Apr. 1;6(2):427-34. Available from: https://izlik.org/JA59UL64GC