The impact of capital adequacy on the profitability of Turkish deposit banks in the period before and after the implementation of Basel II

Yıl 2022, , 46 - 60, 14.12.2022

Pelin Kaya , Şenol Babuşcu , Adalet Hazar

https://doi.org/10.33707/akuiibfd.1128039

Öz

This study aims to analyze the effect of capital adequacy of Turkish deposit banks on their profitability (ROA). For this purpose, panel data regression analysis is carried out using quarterly data for the period 2007Q4-2020Q3. The capital adequacy ratio (CAR) and the ratio of equity to assets (capital ratio) are used as an indicator of capital adequacy. In addition to these variables, bank-specific and macroeconomic control variables, which have an effect on bank performance, are also added to the model. According to the results, CAR and capital ratio have a positive effect on the ROA of banks. In addition, to see the effect of the Basel II implementation, the analysis is carried out in two periods, before and after the implementation of Basel II by Turkish banks. For both periods, the effect of CAR on profitability is positive and statistically significant. Also, a positive and stronger relationship is found between the capital ratio and ROA in the post-Basel II period. This result shows that a strong equity structure contributes to high profitability.

Anahtar Kelimeler

Bank Profitability, Capital Adequacy, Basel II Accord, Panel Data Analysis

Basel II öncesi ve sonrası dönemde sermaye yeterliliğinin Türk mevduat bankalarının kârlılığı üzerindeki etkisi

Öz

Bu çalışmanın amacı Türk mevduat bankalarının sermaye yeterliliğinin aktif kârlılıkları (ROA) üzerindeki etkisini analiz etmektir. Bu amaçla, 2007Q4-2020Q3 dönemine ilişkin üçer aylık veriler kullanılarak panel veri regresyon analizi gerçekleştirilmiştir. Bankaların sermaye yeterliliği; sermaye yeterliliği rasyosu (SYR) ve toplam özkaynakların toplam aktiflere oranı (sermaye oranı) ile ölçülmüştür. Bu değişkenlerin yanı sıra banka performansı üzerinde etkisi olan bankaya özgü ve makroekonomik kontrol değişkenleri de modele eklenmiştir. Sonuçlara göre, SYR ve sermaye oranının bankaların aktif kârlılığı üzerinde pozitif etkisi bulunmaktadır. Çalışmada, ayrıca, Basel II uygulamasına geçilmesinin etkisini görmek amacıyla Türk bankalarının Basel II’yi uygulamaya başlamadan önce ve sonra olmak üzere iki dönem altında sermaye yeterliliğinin ROA üzerindeki etkisi analiz edilmiştir. Her iki dönem için de SYR’nin kârlılık üzerindeki etkisi istatistiksel olarak anlamlı ve pozitiftir. Bununla birlikte, sermaye oranı ile ROA arasında Basel II sonrası dönemde pozitif ve daha güçlü bir ilişki bulunmuştur. Bu sonuç, güçlü özkaynak yapısının yüksek kârlılığa katkı sağladığını göstermektedir.

Anahtar Kelimeler

Banka Kârlılığı, Sermaye Yeterliliği, Basel II Uzlaşısı, Panel Veri Analizi

Kaynakça

• Ahmad, S., Nafees, B. ve Khan, A. (2012). Determinants of Profitability of Pakistani Banks: Panel Data Evidence for the Period 2001-2010. Journal of Business Studies Quarterly, 4(1), 149-165.
• Alharbi, A. T. (2017). Determinants of Islamic Banks’ Profitability: International Evidence. International Journal of Islamic and Middle Eastern Finance and Management, 10(3), 331-350.
• Almaqtari, F. A., Al‐Homaidi, E.A., Tabash M. I. ve Farhan, Najib H. (2019). The Determinants of Profitability of Indian Commercial Banks: A Panel Data Approach. International Journal of Finance and Economics, 24(1), 168–185.
• Alper, D. ve Anbar, A. (2011). Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Turkey. Business and Economics Research Journal, 2(2), 139-152.
• Altıntaş, M. A. (2020, 14 Temmuz). Bankacılıkta Risk ve Sermaye Yönetimi. https://books.google.com.tr/books?id=vXssDwAAQBAJ&printsec=frontcover&hl=tr#v=onepage&q&f=false.
• Arellano, M. ve Bond, S. (1991). Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. Review of Economic Studies, 58(2), 277.
• Arıcan, E., Yücememiş, B., Çinko, L., Işıl, G., Alkan, U. ve Aka, K. (2019). The Effect of Basel Criterias on Banking Profitability in Turkey: Analysis via Cointegration Method. International Journal of Business and Social Science, C(10), 72-83.
• Athanasoglou, P. P., Brissimis, S. N. ve Delis, M. D. (2008). Bank Specific, Industry Specific and Macroeconomic Determinants of Bank Profitability. Journal of International Financial Markets, Institutions and Money, 18(2), 121-136.
• Athanasoglou, P. P., Delis, M. D. ve Staikouras, C. K. (2006). Determinants of Bank Profitability in the South Eastern European Region. Journal of Financial Decision Making, 2(2),1-17.
• Bankacılık Düzenleme ve Denetleme Kurumu-BDDK (2010, 1 Kasım). Krizden İstikrara Türkiye Tecrübesi. Çalışma Tebliği. https://www.bddk.org.tr/ContentBddk/dokuman/duyuru_0395_02.pdf.
• Batten, J. ve Vo, X. V. (2019). Determinants of Bank Profitability—Evidence from Vietnam. Emerging Markets Finance & Trade, 55(6), 1417–1428.
• Boora, K. K. ve Kavita, J. (2018). The Impact of Basel III Norms on Profitability: An Empirical Study of Indian Public Sector Banks. The IUP Journal of Financial Risk Management, 15(3), 44-58.
• Bourke, P. (1989). Concentration and Other Determinants of Bank Profitability in Europe. Journal of Banking and Finance, 65(80), 65-79.
• Bucevska, V. ve Misheva, B. H. (2017). The Determinants of Profitability in the Banking Industry: Empirical Research on Selected Balkan Countries. Eastern European Economics, 55, 146–167.
• Çelik-Kara, A., Babuşcu, Ş. ve Hazar, A. (2021). Türkiye’deki Büyük Ölçekli Mevduat Bankalarında Faiz Dışı Gelirlerin Banka Performansına Etkisi. İzmir Sosyal Bilimler Dergisi, 3(1), 62-72.
• Das, N. M. ve Rout, B. S. (2020). Banks’ Capital Adequacy Ratio: A Panacea or Placebo. Official Journal of the Indian Institute of Management Calcutta, 47(3), 303-318.
• Demirgüç-Kunt, A. ve Huizinga, H. (1999). Determinants of Commercial Bank Interest Margins and Profitability: Some International Evidence. The World Bank Economic Review, 13(2), 379-408.
• Dickey, D. A. ve Fuller, W. A. (1979). Distribution of the Estimators for Autoregressive Time Series with a Unit Root. Journal of the American Statistical Association, 74(366a), 427-431.
• Dietrich, A. ve Wanzenried, G. (2011). Determinants of Bank Profitability Before and During the Crisis: Evidence from Switzerland. Journal of International Financial Markets, Institutions & Money, 21, 307–327.
• Dizgil, E. (2017). Türkiye’deki Mevduat Bankalarının Kârlılığını Etkileyen Mikro Düzeyli Faktörler Üzerine Ampirik Bir Araştırma. BDDK Bankacılık ve Finansal Piyasalar Dergisi, 11(2), 31-52.
• Djalilov, K. ve Piesse, J. (2016). Determinants of Bank Profitability in Transition Countries: What Matters Most? Research in International Business and Finance, 38, 69-82.
• Dumicic, M. ve Ridzak, T. (2013). Determinants of Banks’ Net Interest Margins in Central and Eastern Europe. Financial Theory and Practice, 37(1), 1-30.
• Ezike, J. ve Oke, M.O. (2013). Capital Adequacy Standards, Basle Accord and Bank Performance: The Nigerıan Experience (A Case Study of Selected Banks In Nigeria). Asian Economic and Financial Review, 3(2), 146-159.
• Hidayat, s., Paleni, H. ve Jatmiko, D. P. (2017). Determinants of Profitability: Evidence from Indonesian Firms. International Journal of Economic Perspectives, 11(3), 1049-1057.
• Kaya, P., Babuşcu, Ş. ve Hazar, A. (2021). The Determinants of Profitability of Large-Scale and Small-Scale Turkish Deposit Banks. The Journal of Corporate Governance, Insurance, and Risk Management (JCGIRM), 8(1), 1-18.
• Lartey, V. C., Samuel, A. ve Boadi, E. K. (2013). The Relationship Between Liquidity and Profitability of Listed Banks in Ghana. International Journal of Business and Social Sciences, 4(3), 48-56.
• Lee, J. Y. ve Kim, D. (2013). Bank Performance and Its Determinants in Korea. Japan and the World Economy, 27, 83-94.
• Lee, S. (2013). Financial Crisis, Regulatory Changes and Bank Profit. Review of European Studies, 5(5), 151-158.
• Madugu, A. H., Ibrahim, M. ve Amoah, J. O. (2020). Differential Effects of Credit Risk and Capital Adequacy Ratio on Profitability of the Domestic Banking Sector in Ghana. Transnational Corporations Review, 12(1), 37-52.
• Menicucci, E. ve Paolucci, G. (2016). The determinants of Bank Profitability: Empirical Evidence from European Banking Sector. Journal of Financial Reporting and Accounting, 14(1), 86-115.
• Nguyen, T. H. (2020). Impact of Bank Capital Adequacy on Bank Profitability Under Basel II Accord: Evidence From Vietnam. Journal of Economic Development, 45(1), 31-46.
• Nisa, R. ve Darzi, M. A. (2018). Impact of Basel-III Implementation on Profitability of Banks. International Journal of Commerce and Management Research, 4(5), 101-109.
• Noman, A., Pervin, S., Chowdhury, M. ve Banna, H. (2015). The Effect of Credit Risk on the Banking Profitability: A Case on Bangladesh. Global Journal of Management and Business Research, 15(3), 41-48.
• Ozili, P. K. (2015). Determinants of Bank Profitability and Basel Capital Regulation: Empirical Evidence from Nigeria. Research Journal of Finance and Accounting, 6(2), 124-131.
• 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.
• Pervan, M., Pelivan, I. ve Arnerić, J. (2015). Profit Persistence and Determinants of Bank Profitability in Croatia. Economic Research-Ekonomska Istraživanja, 28(1), 284–298.
• Rakatenda, G. N. ve Sedana, I. B. P. (2021). The Effect of Credit Risk on Profitability With Capital Adequacy as a Mediation Variables. Russian Journal of Agricultural and Socio-Economic Sciences, 111(3), 72-82.
• Reda, I. A., Rjoub, H. ve Alrub, A. A. (2016). The Determinants of Banks’ Profitability Under Basel Regulations: Evidence from Lebanon. International Journal of Economics and Finance, 8(10), 206-219.
• Saona, P. (2016). Intra- and Extra-bank Determinants of Latin American Banks’ Profitability. International Review of Economics and Finance, 45, 197-214.
• Staikouras, C. K. ve Wood, G. E. (2004). The determinants of European Bank Profitability. International Business and Economic Research Journal, 3(6), 57-68.
• Sufian, F. (2009). Factors Influencing Bank Profitability in a Developing Economy: Empirical Evidence from Malaysia. Global Business Review, 10(2), 225–241.
• Sufian, F. ve Habibullah M. S. (2009). Determinants of Bank Profitability in a Developing Economy: Empirical Evidence From Bangladesh. Journal of Business Economics and Management, 10(3), 207-217.
• Thoraneenitiyan, N. ve Avkiran, N. K. (2009). Measuring the Impact of Restructuring and Country-Specific Factors on the Efficiency of Post-Crisis East Asian Banking Systems: Integrating DEA with SFA. Socio-Economic Planning Sciences, 43, 240–252.
• Vyas, R. K., Singh, M. ve Yadav, R. (2008). The Impact of Capital Adequacy Requirements on Performance of Scheduled Commercial Banks. Asia-Pacific Business Review, 4(2), 74-81.
• Winoto, A. ve Bustaman, Y. (2020). Impact of Liquidity, Ownership, Global Financial Crisis, and Capital Adequacy Ratio on Indonesian Banking Profitability Period 2007-2016. Journal the Winners, 21(1), 43-48.