Capital Adequacy and Profitability Relationship for Foreign Deposit Banks in Turkey

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ACAR BALAYLAR N., ÖZDEMİR M. O.

SOSYOEKONOMI, cilt.26, sa.36, ss.209-224, 2018 (ESCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 26 Sayı: 36
  • Basım Tarihi: 2018
  • Doi Numarası: 10.17233/sosyoekonomi.2018.02.12
  • Dergi Adı: SOSYOEKONOMI
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Sayfa Sayıları: ss.209-224
  • Anahtar Kelimeler: Foreign Banks, Capital Requirements, ARDL, TIME-SERIES, COINTEGRATION
  • Dokuz Eylül Üniversitesi Adresli: Evet

Özet

In this study the relationship between profitability and the capital requirements was analysed for the foreign capital deposit banks in Turkey. Although there are many studies in the Turkish banking sector on profitability analysis, the studies on bank groups is limited. In this study the capital requirements and the profitability relationship for the foreign capital banks was analysed with data from 2004-2016 based on ARDL approach. The study concludes that there is a significant and positive relationship between the capital requirements and probability for foreign capital deposit banks in Turkey. Similar results were also found in our previous study on national capital deposit banks for the relationship between capital requirements and profitability.