The Relationship of Banks’ Profitability and Financial Soundness Indicators: Granger Causality Analysis in Turkey

Year 2023, Issue: 119, 61 - 76, 03.04.2023

Sabrı Burak Arzova Bertaç Şakir Şahin

Abstract

This study investigates the effect of financial soundness variables on bank performance in Turkey. In the study, banking data and inflation at the macroeconomic level for the period 2000-2019 are used in two models. In the research model, return on assets and return on equity are included in the research model as variables representing bank performance. Capital adequacy ratio and non-performing loans are the financial soundness variables in the model. According to Granger causality analysis, there is a bidirectional causality relationship between return on assets and capital adequacy ratio. Similar relationship exists between inflation and non performing loans

Keywords

Financial Soundness, Bank Profit, Turkey

Bankaların Finansal Karlılık Oranlarıyla Finansal Sağlamlık Göstergeleri İlişkisi: Türkiye’de Granger Nedensellik Analizi

Abstract

Bu çalışma, Türkiye’de finansal sağlamlık değişkenlerinin banka performansı üzerindeki etkisini araştırmaktadır. Çalışmada iki modelde 2000-2019 dönemine ait makroekonomik düzeydeki bankacılık verileri ve enflasyon kullanılmıştır. Araştırma modelinde aktif karlılığı ve özsermaye karlılığı banka performansını temsil eden değişkenler olarak yer almıştır. Sermaye yeterliliği oranı ve sorunlu krediler modelde yer alan finansal sağlamlık değişkenleridir. Granger nedensellik analizi sonuçlarına göre aktif karlılığı ile sermaye yeterliliği oranı arasında karşılıklı bir nedensellik ilişkisi mevcuttur. Benzer bir ilişki enflasyon ile ve sorunlu krediler arasında bulunmaktadır.

Keywords

Finansal Sağlamlık, Banka Karlılığı, Türkiye

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