How does ownership structure affect the profitability of Turkish banks? A comparative analysis of determinants

Ahsen Emir Bulut (), Nilgun Acar Balaylar () and Turan Karimli ()
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Ahsen Emir Bulut: Dokuz Eylül University, Graduate School of Social Sciences, Kuruçeşme, Izmir, Turkiye
Nilgun Acar Balaylar: Dokuz Eylül University, Faculty of Business Administration and Economics, Department of Economics, Izmir, Turkiye
Turan Karimli: Azerbaijan State Economic University, Narimanov, Baku, Azerbaijan; Western Caspian University, Baku, Azerbaijan

Public Sector Economics, 2024, vol. 48, issue 3, 337-361

Abstract: This study examines the determinants of profitability of deposit banks in Turkiye taking into account differences in the ownership structures of public, private domestic and foreign-owned banks. The aim of the study is to analyse whether the factors determining profitability change depending on the managerial differences that the ownership structure may entail. A seemingly unrelated regression method with monthly data from 2010 to 2022 is used for this purpose. Our findings suggest that the real effective exchange rate, inflation, and non-interest income variables have common effects on profitability regardless of bank ownership. However, the bank capital ratio, bank size, loan to deposit ratio, and economic activity affect profitability differently across bank ownership types.

Keywords: ownership structure; Turkiye; bank profitability; seemingly unrelated regression (search for similar items in EconPapers)
JEL-codes: C23 G21 H82 L2 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ipf:psejou:v:48:y:2024:i:3:p:337-361

DOI: 10.3326/pse.48.3.4

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