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Journals / İzmir Sosyal Bilimler Dergisi / 2021 / Cilt: 3 - Sayı: 1

Impact of Non-Interest Income on Bank Performance for Large-Scale Deposit Banks in Turkey

Türkiye’deki Büyük Ölçekli Mevduat Bankalarında Faiz Dışı Gelirlerin Banka Performansına Etkisi

Aylin ÇELİK KARA
Şenol BABUŞÇU
Adalet HAZAR
Pages
62–72
Publication Date
2021-06-30
DOI
—
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AI Summary & Key Takeaways

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

As a result of the analysis using the panel data method, it was determined that the non-interest income has positive effect on bank performance which is measured by return on assets and return on equity; has negative effect on net interest margin.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Traditional function of deposit banks was used to be a mediation for the supply and demand of funds.
📊
Key Findings & Data:However, since the 2000s, in line with technological advancement, increasing competition, decreasing net interest margins and profit margins, banks started to provide many services other than deposit and loan transactions.
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Conclusion & Impact:As a result of the analysis using the panel data method, it was determined that the non-interest income has positive effect on bank performance which is measured by return on assets and return on equity; has negative effect on net interest margin.
🔬Design:Research Article
📍Scope:Comprehensive Sample
⚙️Variables:faiz dışı gelir · banka performansı · aktif karlılığı

Abstract

Traditional function of deposit banks was used to be a mediation for the supply and demand of funds. In this context, the most important income source is the interest income. However, since the 2000s, in line with technological advancement, increasing competition, decreasing net interest margins and profit margins, banks started to provide many services other than deposit and loan transactions. As a result of these, the income and product diversity of deposit banks increased. This increase in product diversity has led to an increase in non-interest income from non-traditional activities. In this concept, the aim of this study is to determine the effect of non-interest income on the financial performance of deposit banks. The scope of this study is taking into account seven large-scale deposit banks operating in Turkey. As a result of the analysis using the panel data method, it was determined that the non-interest income has positive effect on bank performance which is measured by return on assets and return on equity; has negative effect on net interest margin.

Özet

Mevduat bankalarının geleneksel işlevi, fonların arz ve talebine aracılık etmektir. Bu bağlamda en önemli gelir kaynakları faiz geliridir. Ancak, 2000'li yıllardan itibaren teknolojik gelişme, artan rekabet, azalan net faiz marjları ve kar marjlarına paralel olarak bankalar mevduat ve kredi işlemleri dışında çeşitli hizmetler sunmaya başlamışlardır. Bunların sonucunda mevduat bankalarının gelir ve ürün çeşitliliği artmıştır. Ürün çeşitliliğindeki bu artış, geleneksel olmayan faaliyetlerden faiz dışı gelire yönelmelerine neden olmuştur. Bu gelişmeler dikkate alındığında çalışmanın amacı, faiz dışı gelirin mevduat bankalarının finansal performansı üzerindeki etkisini belirlemektir. Çalışmanın kapsamını Türkiye'de faaliyet gösteren yedi büyük ölçekli mevduat bankası oluşturmaktadır. Panel veri analizi yöntemi kullanılarak yapılan çalışma sonucunda faiz dışı gelirin, aktif kârlılığı ve özkaynak kârlılığı üzerinde olumlu; net faiz marjı ile olumsuz yönde etkisi olduğu tespit edilmiştir.

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Cite This Article

KARA, A. Ç., BABUŞÇU, Ş., HAZAR, A. (2021). Impact of Non-Interest Income on Bank Performance for Large-Scale Deposit Banks in Turkey. İzmir Sosyal Bilimler Dergisi, Cilt: 3 - Sayı: 1, 62–72. https://ajindex.com/articles/772955

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