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ANALYSIS OF THE RELATIONSHIP BETWEEN FINANCIAL INNOVATION AND THE PERFORMANCE OF TURKISH BANKING

Year 2017, Volume 5, Issue 3, 16 - 32, 30.10.2017
https://doi.org/10.18825/iremjournal.280341

Abstract

This paper aims to examine the relationship between profitableness of Turkish banking system and online banking, telephone banking and credit cards In this study, total net profit for the period in Turkish banking system considered as an independent variable by trimesters, and online banking, telephone banking and credit cards, tested to see whether they influence this profitableness, considered as dependent variables. Given data achieved from official sources between 2011-2014 and simple regression analysis be used in this study. The results of the regressions show that only credit card usage has a significant positive impact on ROA, ROE and NIM. The positive impact on ROA and ROE imply that credit card usage increases the profitability and thus the performance of banking system, but the positive impact on NIM shows that banks charge their customers more for their credit card usage. 

References

  • Abir, M., & Chokri, M. 2010. Is Financial Innovation Influenced By Financial Liberalization? Evidence From The Tunisian Banking Industry. Banks and Bank Systems, 5(3), 97-111.
  • Akçaoğlu, E.; 1998. Financial Innovation in Turkish Banking, Capital Markets Board, No: 127, Ankara, Turkey.
  • Arisa, C., Nyangena; M. W. 2015. Effects Of Electronic Banking On Financial Performance Of Commercial Banks In Kenya; Survey Study Of Banks In Kenya, International Journal of Social Sciences and Entrepreneurship, 2(2). 63-74
  • Arnaboldi, F., & Rossignoli, B. 2015. Financial Innovation in Banking. Palgrave Macmillan Studies in Banking and Financial Institutions, 127.
  • Banka, S. 2013. Financial Innovation: India’s Prowess?, ThinkTank, CFO Connect, 2013.
  • Beck, T.; Chen T.; Lin C.; Song F.M.; 2012. Financial Innovation: The Bright and the Dark Sides, Working Papers Series.
  • Berk, J. M. 2002. Central banking and financial innovation. A survey of the modern literature, BNL Quarterly Review, No. 222.
  • Boot, A. W.A.; Thakor A. V. 1997. Banking Scope and Financial Innovation, The Review of Financial Studies, Vol. 10; No:4 , 1099-1131.
  • Boot, A. W., & Marinč, M. 2010. Financial Innovation: Economic Growth Versus Instability in Bank-Based Versus Financial Market Driven Economies. Te Verschijnen in: Research Handbook On International Banking And Governance Queries.

ANALYSIS OF THE RELATIONSHIP BETWEEN FINANCIAL INNOVATION AND THE PERFORMANCE OF TURKISH BANKING

Year 2017, Volume 5, Issue 3, 16 - 32, 30.10.2017
https://doi.org/10.18825/iremjournal.280341

Abstract

This paper aims to examine the relationship between profitableness of Turkish banking system and online banking, telephone banking and credit cards In this study, total net profit for the period in Turkish banking system considered as an independent variable by trimesters, and online banking, telephone banking and credit cards, tested to see whether they influence this profitableness, considered as dependent variables. Given data achieved from official sources between 2011-2014 and simple regression analysis be used in this study. The results of the regressions show that only credit card usage has a significant positive impact on ROA, ROE and NIM. The positive impact on ROA and ROE imply that credit card usage increases the profitability and thus the performance of banking system, but the positive impact on NIM shows that banks charge their customers more for their credit card usage. 

References

  • Abir, M., & Chokri, M. 2010. Is Financial Innovation Influenced By Financial Liberalization? Evidence From The Tunisian Banking Industry. Banks and Bank Systems, 5(3), 97-111.
  • Akçaoğlu, E.; 1998. Financial Innovation in Turkish Banking, Capital Markets Board, No: 127, Ankara, Turkey.
  • Arisa, C., Nyangena; M. W. 2015. Effects Of Electronic Banking On Financial Performance Of Commercial Banks In Kenya; Survey Study Of Banks In Kenya, International Journal of Social Sciences and Entrepreneurship, 2(2). 63-74
  • Arnaboldi, F., & Rossignoli, B. 2015. Financial Innovation in Banking. Palgrave Macmillan Studies in Banking and Financial Institutions, 127.
  • Banka, S. 2013. Financial Innovation: India’s Prowess?, ThinkTank, CFO Connect, 2013.
  • Beck, T.; Chen T.; Lin C.; Song F.M.; 2012. Financial Innovation: The Bright and the Dark Sides, Working Papers Series.
  • Berk, J. M. 2002. Central banking and financial innovation. A survey of the modern literature, BNL Quarterly Review, No. 222.
  • Boot, A. W.A.; Thakor A. V. 1997. Banking Scope and Financial Innovation, The Review of Financial Studies, Vol. 10; No:4 , 1099-1131.
  • Boot, A. W., & Marinč, M. 2010. Financial Innovation: Economic Growth Versus Instability in Bank-Based Versus Financial Market Driven Economies. Te Verschijnen in: Research Handbook On International Banking And Governance Queries.

Details

Subjects Social
Journal Section ARTICLES
Authors

Aysel GÜNDOĞDU>
İSTANBUL MEDİPOL ÜNİVERSİTESİ, İŞLETME VE YÖNETİM BİLİMLERİ FAKÜLTESİ
Türkiye


Fatma DİLVİN TAŞKIN>

Publication Date October 30, 2017
Application Date December 22, 2016
Acceptance Date August 1, 2017
Published in Issue Year 2017, Volume 5, Issue 3

Cite

APA Gündoğdu, A. & Dilvin Taşkın, F. (2017). ANALYSIS OF THE RELATIONSHIP BETWEEN FINANCIAL INNOVATION AND THE PERFORMANCE OF TURKISH BANKING . International Review of Economics and Management , 5 (3) , 16-32 . DOI: 10.18825/iremjournal.280341