EconPapers    
Economics at your fingertips  
 

Bank Specific and Macroeconomic Determinants of Profitability: Evidence From Participation Banks in Turkey

Fatih Macit

Economics Bulletin, 2012, vol. 32, issue 1, 586-595

Abstract: In this paper I investigate the bank specific and macroeconomic determinants of profitability in participation banks for Turkish banking sector by looking at two different profitability indicators namely return on assets (ROA) and return on equity (ROE). I find that in terms of bank specific determinants of profitability the ratio of non-performing loans to total loans and log of real assets are both highly significant and the former one has a negative effect on profitability whereas the latter one has a positive impact on profitability in participation banks. The ratio of equity to total assets is highly significant for both indicators but it has different effects on ROA and ROE. In terms of macroeconomic determinants of profitability the level of exchange rate and the real interest rate are significant and they are expected to have a positive impact on profitability in participation banks.

Keywords: Bank profitability; Macroeconomic Determinants; Participation Banks (search for similar items in EconPapers)
JEL-codes: G2 (search for similar items in EconPapers)
Date: 2012-02-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31) Track citations by RSS feed

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I1-P55.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-11-00769

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().

 
Page updated 2019-03-31
Handle: RePEc:ebl:ecbull:eb-11-00769