The Impact of Bank Specific Factors on Bank Stability: Evidence from Turkish Banking Sector

Year 2021, Volume: 10 Issue: 2, 1096 - 1117, 30.06.2021

Duygu Arslantürk Çöllü

https://doi.org/10.15869/itobiad.852327

Cited By: 1

Abstract

The global financial crisis that started in 2008 adversely affected financial system stability and the system became unstable. This situation, which shows that resources cannot be allocated efficiently in the financial system, has weakened the ability of banks, which constitute one of the most important pillars of the financial system, to evaluate and manage financial risk. In this process, the banks were criticized for focusing on profitability rather than bank stability until the financial crisis period. Since financial system stability is one of the important components of a more strong and stable economy, great efforts have been made to make the system more stable after the crisis.
Considering the past crises, increasingly complex risks and increasing competition, it is known that it is desirable for banks, which play an important role in the financial system, to be more stable. In this context, researching bank-specific factors affecting bank stability, especially after the global financial crisis, has become an important issue for researchers, bank managers, policy makers and other players in the financial system. Considering that a more stable and reliable banking sector is stronger in protection from financial problems and contributes to the stability of the financial system emphasizes the importance of this issue. Therefore, the aim of this study is to investigate the bank specific determinants of stability of commercial banks in Turkey. Panel data analysis was used as a method in the study in which the period of 2010Q1-2017Q4 was taken into account. Within the scope of the study, the Z-score was used to represent bank stability and bank size, funding risk, liquidity risk, credit risk and return on equity are taken into account as bank-specific determinants of bank stability. Findings show that bank stability is positively affected by the funding risk and the return on equity, but negatively affected by the bank size and liquidity risk. On the other hand credit risk factor was found to be statistically insignificant. 

Keywords

Bank Stability, Turkish Banking Sector, Bank-Specific Factors, Panel Data Analysis, Z-score

Bankaya Özgü Faktörlerin Banka İstikrarı Üzerindeki Etkileri: Türk Bankacılık Sektörü Örneği

Abstract

2008 yılında baş gösteren küresel finansal kriz, finansal sistemi olumsuz yönde etkilemiş ve sistem büyük ölçüde istikrarsızlaşmıştır. Kaynakların etkin şekilde tahsis edilemediğine işaret eden bu durum, finansal sistemin en önemli ayaklarından birini oluşturan bankaların finansal riski değerlendirme ve yönetme kabiliyetinin zayıflamasıyla sonuçlanmıştır. Bu süreçte bankalar, finansal kriz dönemine kadar banka istikrarından ziyade karlılığa odaklandıkları gerekçesiyle eleştirilmiştir. Güçlü ve istikrarlı bir ekonominin önemli bileşenlerinden birini finansal sistem istikrarının oluşturması nedeniyle kriz sonrasında kaybedilen istikrarın tekrar kazanılmasını sağlamak üzere büyük bir çaba sarf edilmiştir.
Mevcut finansal sistem içerisinde oldukça önemli bir yere sahip olan bankaların geçmişte yaşanan krizler, giderek karmaşıklaşan riskler ve her geçen gün artan rekabet göz önüne alındığında daha istikrarlı bir yapıya kavuşturulmasının arzu edilen bir durum olduğu bilinmektedir. Bu kapsamda özellikle küresel finansal kriz sonrasında banka istikrarını etkileyen bankaya özgü faktörlerin araştırılması araştırmacıların, banka yöneticilerinin, politika yapıcıların ve finansal sistemdeki diğer tarafların üzerinde önemle durduğu bir konu haline gelmiştir. İstikrarlı ve güvenilir bir bankacılık sektörünün, finansal sorunlardan korunma noktasında daha güçlü bir yapı gösterdiği ve finansal sistemin istikrarına katkıda bulunduğu dikkate alındığında konunun önemi daha iyi anlaşılmaktadır. Dolayısıyla bu çalışmanın amacı Türkiye’deki mevduat bankalarının istikrarı üzerinde etkili olan bankaya özgü faktörleri araştırmaktır. Araştırma dönemi olarak 2010Q1-2017Q4 zaman aralığının dikkate alındığı çalışmada, yöntem olarak panel veri analizinden yararlanılmıştır. Ayrıca çalışmada, banka istikrarının temsilcisi olarak Z-skorunun kullanılırken, banka istikrarının bankaya özgü belirleyicileri olarak banka büyüklüğü, fon bulma riski, likidite riski, kredi riski ve özsermaye karlılığı dikkate alınmıştır. Yapılan analizler sonucunda fon bulma riski ve özsermaye karlılığının banka istikrarını olumlu; banka büyüklüğü ve likidite riskinin ise banka istikrarını olumsuz yönde etkilediği tespit edilmiştir. Kredi riskine ilişkin olarak anlamlı bir bulguya ulaşılamamıştır.   

Keywords

Banka İstikrarı, Türk Bankacılık Sektörü, Bankaya Özgü Faktörler, Panel Veri Analizi, Z-skoru

References

• Adaramola, A.O. ve Adejayan, A.O. (2020). Determinants of Financial Stability of Deposit Money Banks in Nigeria, International Journal of Innovative Research, 9(4):255-262.
• Adusei, M. (2015a). The Impact of Bank Size and Funding Risk on Bank Stability, Cogent Economics and Finance, 3(1):1-19.
• Adusei, M. (2015b). Bank Profitability: Insights from the Rural Banking Industry in Ghana
, Cogent Economics and Finance, 3(1):1-15.
• Afşar, M. (2011). Küresel Kriz ve Türk Bankacılık Sektörüne Yansımaları, Eskişehir Osmangazi üniversitsi İktisadi ve idari Bilimler Dergisi, 6 (2):143-171.
• Alharthi, M. (2017). Indicators Influencing Performance and Stability in GCC Banking Sector, Corporate Ownership and Control, 15(1-2), 408-420.
• Ali, M. ve Puah, C. H. (2019). The Internal Determinants of Bank Profitability and Stability: An Insight from Banking Sector of Pakistan, Management Research Review, 42 (1): 49-67.
• Almir, A., Ekşi, H.İ. ve Doğan, B. (2020). The Determinants of Bank Stability: Evidence From Selected Balkan Countries and Turkey, International Review, 1-2:94-105.
• Altaee, H.H.A., Talo, I.M.A.ve Adam, M.H.M. (2013). Testing the Financial Stability of Banks in GCC countries: Pre and Post Financial Crisis, International Journal of Business and Social Research (IJBSR), 3(4): 93-105.
• Altman, E. (2000). Predicting Financial Distress of Companies: Revisiting the Z-score and ZETA Models. Erişim Tarihi: 10.12.20202, www.Stern.Nyu.Edu/~Ealtman/ Zscores.Pdf.
• Athanasoglou, P.P., Brissimis, S.N. ve Delis, M. (2008). Bank-Specific, Industry-Specific and Macroeconomic Determinants of Bank Profitability, Journal of International Financial Markets, Institutions and Money, 18 (2) 121–136.
• Baltagi, B. H. (2001). Econometric Analysis of Panel Data, John Wiley, New York.
• Çalışkan, Z. (2009). OECD Ülkelerinde Sağlık Harcamaları: Panel Veri Analizi, Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 34: 117-137.
• Calomiris, C. ve Kahn, C. (1991). The Role of Demandable Debt in Structuring Optimal Banking Arrangements, American Economic Review, 81(3): 497-513.
• Dayı, F. ve Çetinkaya, R. (2019). The Effect of Liquidity on Liabilities: An Application In Automotive Companies. İnsan ve Toplum Bilimleri Araştırmaları Dergisi, 8(3): 1813-1829.
• Demirgüç Kunt, A. ve Huizinga, H. (2010). Bank Activity and Funding Strategies: The Impact on Risk and Returns, Journal of Financial Economics, 98(3): 626-650.
• Diaconu, R. I. ve Oanea, D.C. (2014). The Main Determinants of Bank’s Stability. Evidence from Romanian Banking Sector, Procedia Economics and Finance , 16: 329 – 335
• Diaconu, R. I. ve Oanea, D.C. (2015). Determinants of Bank’s Stability. Evidence from Credit Coop, Procedia Economics and Finance, 32: 488 – 495.
• Donaldson, L. (1985). In Defence of Organization Theory, A Reply to the Critics, Cambridge University Press, Cambridge.
• Ferhi, A. (2018). Credit Risk and Banking Stability: A Comparative Study between Islamic and Conventional Banks, International Journal of Law and Management, 60(4):1009-1019.
• Fiordelisi, F. ve Mare, D.S. (2014). Competition and Financial Stability in European Cooperative Banks, Journal of International Money and Finance, 45: 1-16.
• Flamini, V., McDonald, C. ve Schumacher, L. (2009). The Determinants of Commercial Bank Profitability in Sub-Saharan Africa, IMF Working Papers Series, WP/09/15: 1-32. Granger, C. W. ve Newbold, P. (1974). Spurious Regressions in Econometrics, Journal of Econometrics, 2(2), 111-120.
• Greene, W. H. (2012). Econometric analysis (7th Ed.), New Jersey: Prentice Hall.
• Hausman, J.A. (1978). Specification Tests in Econometrics, Econometrica 46(6): 1251-1271.
• Hussein, K. (2010). Bank-Level Stability Factors and Consumer Confidence – A Comparative Studyof Islamic and Conventional Banks’ Product Mix, MPRA Paper No. 21800, Erişim Tarihi: 12.12.2020, http://mpra.ub.uni-muenchen.de/21800/
• Islam, S.M.N., Ali, M.J. ve Wafik, A. (2019). Determinants of Deposit Mobilization of Private Commercial Banks: Evidence from Bangladesh, International Journal of Business and Management Invention (IJBMI), 8(10): 26-33.
• Jahn, N., Kick, Th., (2012). Determinants of Banking System Stability: A Macro-Prudential Analysis, BIS Working Paper, Erişim Tarihi: 18.11.2020, https://www.bis.org/bcbs/events/bhbibe/jahn.pdf
• Karaaslan, S. ve Gülhan, O. (2020). TFRS 9'a Geçişin Türkiye'de Halka Açık Bankaların Finansal Durum Tablolarına Etkileri, Muhasebe ve Finansman Dergisi, 86:111-124.
• Kasman, A. ve Kırbaş-Kasman, S. (2013). The Dynamic Relationship Between Earnings Volatility, Concentration, Stability and Size in the Turkish Banking Sector, Applied Economics Letters, 20(12): 1187-1192.
• Kasri, R. A. ve Azzahra, C. (2020). Determinants of Bank Stability in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 9 (2), 153-166.
• Kiemo, M.S., Olweny,T.O., Muturi, W.M. ve Mwangi, W.L. (2019). Bank-Specific Determinants of Commercial Banks Financial Stability in Kenya, Journal of Applied Finance and Banking, 9(1):119-145.
• Koç, Y.D. ve Karahan, F. (2017). Türk Bankacılık Sektöründe Finansal Sağlamlığın Belirleyicileri, International Journal of Academic Value Studies (Javstudies), 3 (15):148-153.
• Koskei, L. (2020). Determinants of Banks’ Financial Stability in Kenya Commercial Banks, Asian Journal of Economics, Business and Accounting, 18(2): 48-57.
• Köhler, M. (2015). Which banks are more risky? The Impact of Business Models on Bank Stability, Journal of Financial Stability, 16: 195-212.
• Li, Y. (2007). Determinants of Banks. Profitability and its Implication on Risk Management Practices: Panel Evidence from the UK in the Period 1999–2006, University of Nottingham.
• Mercieca, S., Schaeck, K. VE Wolfe, S. (2007). Small European Banks: Benefits from Diversification?, Journal of Banking and Finance, 31(7), 1975-1998.
• Ozili, P. K. (2019). Determinants of Banking Stability in Nigeria. Forthcoming in: CBN Bullion, MPRA Paper No. 94092, Erişim Tarihi: 09.11.2020, https://mpra.ub.uni-muenchen.de/94092/
• Öztürk-Danışman, G. (2018). Determinants of Bank Stability: A Financial Statement Analysis of Turkish Banks, Sosyoekonomi, 26(38), 87-103.
• Pasiouras F. ve Kosmidou K. (2007). Factors Influencing the Profitability of Domestic and Foreign Commercial Banks in The European Union, Research in International Business and Finance, 21(2): 222-237.
• Regehr, K. ve Sengupta, R. (2016). Has the Relationship between Bank Size and Profitability Changed?, Economic Review, Q (II): 49-72.
• Stiroh, K.J. (2004). Do community banks benefit from diversification?, Journal of Financial Services Research, 25 (2/3):135–160.
• Tan, Y. ve Anchor, J. (2016). Stability and Profitability in the Chinese Banking Industry: Evidence from an Auto-Regressive-Distributed Linear Specification, Investment Management and Financial Innovations, 13(4): 155-163.
• Wooldridge, J. (2009). Introductory econometrics: a modern approach (4th. Ed.), Canada: South Western Cengage Learning.