Influencing Factors of Net Interest Margin in Turkish Banking Sector

Volume: 7 Number: 1 March 1, 2017
  • Serhat Yuksel
  • Sinemis Zengin
EN

Influencing Factors of Net Interest Margin in Turkish Banking Sector

Abstract

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

Details

Primary Language

English

Subjects

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Journal Section

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Authors

Serhat Yuksel This is me

Sinemis Zengin This is me

Publication Date

March 1, 2017

Submission Date

March 1, 2017

Acceptance Date

-

Published in Issue

Year 2017 Volume: 7 Number: 1

APA
Yuksel, S., & Zengin, S. (2017). Influencing Factors of Net Interest Margin in Turkish Banking Sector. International Journal of Economics and Financial Issues, 7(1), 178-191. https://izlik.org/JA85SK48PA
AMA
1.Yuksel S, Zengin S. Influencing Factors of Net Interest Margin in Turkish Banking Sector. IJEFI. 2017;7(1):178-191. https://izlik.org/JA85SK48PA
Chicago
Yuksel, Serhat, and Sinemis Zengin. 2017. “Influencing Factors of Net Interest Margin in Turkish Banking Sector”. International Journal of Economics and Financial Issues 7 (1): 178-91. https://izlik.org/JA85SK48PA.
EndNote
Yuksel S, Zengin S (March 1, 2017) Influencing Factors of Net Interest Margin in Turkish Banking Sector. International Journal of Economics and Financial Issues 7 1 178–191.
IEEE
[1]S. Yuksel and S. Zengin, “Influencing Factors of Net Interest Margin in Turkish Banking Sector”, IJEFI, vol. 7, no. 1, pp. 178–191, Mar. 2017, [Online]. Available: https://izlik.org/JA85SK48PA
ISNAD
Yuksel, Serhat - Zengin, Sinemis. “Influencing Factors of Net Interest Margin in Turkish Banking Sector”. International Journal of Economics and Financial Issues 7/1 (March 1, 2017): 178-191. https://izlik.org/JA85SK48PA.
JAMA
1.Yuksel S, Zengin S. Influencing Factors of Net Interest Margin in Turkish Banking Sector. IJEFI. 2017;7:178–191.
MLA
Yuksel, Serhat, and Sinemis Zengin. “Influencing Factors of Net Interest Margin in Turkish Banking Sector”. International Journal of Economics and Financial Issues, vol. 7, no. 1, Mar. 2017, pp. 178-91, https://izlik.org/JA85SK48PA.
Vancouver
1.Serhat Yuksel, Sinemis Zengin. Influencing Factors of Net Interest Margin in Turkish Banking Sector. IJEFI [Internet]. 2017 Mar. 1;7(1):178-91. Available from: https://izlik.org/JA85SK48PA