NON-TRADITIONAL ACTIVITIES AND FUNDING STRUCTURES: AN ANALYSIS OF COMMERCIAL BANKS IN TURKEY

Year 2017, Issue: 18, 53 - 70, 01.01.2017

Pelin Özek

Abstract

The purpose of this paper is to identify the effects of bank characteristics on non-traditional activities and funding structures of commercial banks. Using data from 24 commercial banks operating in Turkey over the period 2006-2014, it is found that bank characteristics have an important role in explaining non-traditional activities and funding structures. According to the findings, bank size is statistically significant in explaining each component of non-interest income. Faster growth and higher profitability are essentially associated with higher trading income. Also, foreign ownership has a significant impact on fee and commission income and trading income. Findings regarding the funding structures of commercial banks show that foreign ownership and loan loss provisions are important factors in explaining the ratio of non-deposit funding to total liabilities.

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