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Journals / İktisadi İdari ve Siyasal Araştırmalar Dergisi / 2022 / Cilt: 7 - Sayı: 17

The Effect of The Financial Soundness Index on The Financial Performance of Banks: An Application in Turkey

Finansal Sağlamlık Endeksinin Bankaların Finansal Performansına Etkisi: Türkiye'de Bir Uygulama

Ahmet ŞİT
Pages
129–140
Publication Date
2022-02-27
DOI
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AI Summary & Key Takeaways

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

The results show that there is a two-way relationship between Banking Strength Index and Market Value, and a one-way causality relationship from Profitability ratios to Banking Strength Index.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:In this study, the effect of bank soundness on financial performance in the banking sector in Turkey is investigated.
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Key Findings & Data:The study conducted on 11 banks operating in the BIST Bank Index.
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Conclusion & Impact:The results show that there is a two-way relationship between Banking Strength Index and Market Value, and a one-way causality relationship from Profitability ratios to Banking Strength Index.
🔬Design:Modeling & Simulation
📍Scope:2005-2019 Verileri
⚙️Variables:Bankalar · Sağlamlık Endeksi · Karlılık Oranları

Abstract

In this study, the effect of bank soundness on financial performance in the banking sector in Turkey is investigated. The study conducted on 11 banks operating in the BIST Bank Index. Industrial Development Bank was not included in the study as it left the commercial banks due to its activities. Annual data for the 2005-2019 period were used in the study. In the application model of the study, profitability ratios and market value ratios were determined as dependent variables and banking soundness index as independent variables. Kónya causality test was used as a method. The results show that there is a two-way relationship between Banking Strength Index and Market Value, and a one-way causality relationship from Profitability ratios to Banking Strength Index.

Özet

Bu çalışmada, Türkiye'de bankacılık sektöründe bankanın sağlamlığının finansal performansa etkisi araştırılmıştır. Çalışma, BIST Banka Endeksi'nde faaliyet gösteren 11 banka üzerinde uygulanmıştır. Sınai Kalkınma Bankası, faaliyetleri nedeniyle ticari bankalardan ayrıldığı için çalışmaya dahil edilmemiştir. Çalışmada 2005-2019 dönemine ait yıllık veriler kullanılmıştır. Çalışmanın uygulama modelinde bağımlı değişken olarak karlılık oranları ve piyasa değeri oranları, bağımsız değişkenler olarak bankacılık sağlamlığı endeksi belirlenmiştir. Yöntem olarak Kónya nedensellik testi kullanılmıştır. Sonuçlar, Bankacılık Güç Endeksi ile Piyasa Değeri arasında iki yönlü bir ilişki olduğunu ve Karlılık oranlarından Bankacılık Güç Endeksi'ne doğru tek yönlü bir nedensellik ilişkisi olduğunu göstermektedir.

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Cite This Article

ŞİT, A. (2022). The Effect of The Financial Soundness Index on The Financial Performance of Banks: An Application in Turkey. İktisadi İdari ve Siyasal Araştırmalar Dergisi, Cilt: 7 - Sayı: 17, 129–140. https://ajindex.com/articles/674271

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