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Journals / BDDK Bankacılık ve Finansal Piyasalar Dergisi / 2012 / Cilt: 6 - Sayı: 2

The Determinants of Net Interest Margin in the Turkish Banking Sector: Does Bank Ownership Matter?

Fatih KANSOY
Pages
13–49
Publication Date
2012-12-01
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

At the same time, the impacts of implicit interest payment, operation diversity and operating cost are homogeneous across all banks.

📌 3 Key Takeaways

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Objective & Hypothesis:This research presented an empirical investigation of the determinants of the net interest margin in Turkish Banking sector with a particular emphasis on the bank ownership structure.
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Key Findings & Data:This study employed a unique bank-level dataset covering Turkey`s commercial banking sector for the 2001-2012.
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Conclusion & Impact:At the same time, the impacts of implicit interest payment, operation diversity and operating cost are homogeneous across all banks.
🔬Design:Research Article
📍Scope:2001-2012 Verileri
⚙️Variables:Banks · Turkish Banking Sector · Interest Rate Margin

Abstract

This research presented an empirical investigation of the determinants of the net interest margin in Turkish Banking sector with a particular emphasis on the bank ownership structure. This study employed a unique bank-level dataset covering Turkey`s commercial banking sector for the 2001-2012. Our main results are as follows. Operation diversity, credit risk and operating costs are important determinants of margin in Turkey. More efficient banks exhibit lower margin and also price stability contributes to lower margin. The effect of principal determinants such as credit risk, bank size, market concentration and inflation vary across foreign-owned, state-controlled and private banks. At the same time, the impacts of implicit interest payment, operation diversity and operating cost are homogeneous across all banks.

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Cite This Article

KANSOY, F. (2012). The Determinants of Net Interest Margin in the Turkish Banking Sector: Does Bank Ownership Matter?. BDDK Bankacılık ve Finansal Piyasalar Dergisi, Cilt: 6 - Sayı: 2, 13–49. https://ajindex.com/articles/473865

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