The Effect of Maturity Structures of Bank Assets and Liabilities on Performance: An Empirical Implementation on Deposit Banks in Turkey

Akın Taylan Alkan, Hicabi Ersoy and Mefule Fındıkçı Erdoğan
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Akın Taylan Alkan: Istanbul Commerce University
Hicabi Ersoy: Istanbul Commerce University
Mefule Fındıkçı Erdoğan: Istanbul Commerce University

Journal of Finance Letters (Maliye ve Finans Yazıları), 2022, vol. 37, issue 117, 233-246

Abstract: The increasing role of the financial system in the economy as a result of the global structure, technological progress, and the interdependence of financial institutions has led to the emergence of the importance of stability in the banking sector. For this reason, the financial system has become undeniable in terms of the economic policies of the countries. In a capital-intensive economy, the banking sector is the building block of the financial system. Therefore, profitability and growth in the banking sector are in a position to support economic development. This study, it is aimed to examine the effect of the maturity structure of loans and deposits in bank balance sheets on bank performance. In this context, how the net interest margin, which is an one indicator banks' profitability, is affected by deposit and loan maturities was analyzed with the censored tobit model method for the 2003-2019 period. The study shows that changes in the maturity structure of loans have an effect on the net interest margin in periods when interest rates increase.

Keywords: Banking Performance Analysis; Maturity Structures of Assets and Liabilities; Dynamic Censored Tobit Model (search for similar items in EconPapers)
JEL-codes: G00 G21 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:acc:malfin:v:37:y:2022:i:117:p:233-246

DOI: 10.33203/mfy.1082190

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