THE EFFECT OF CREDIT RISK ON ASSET PROFITABILITY FOR MEDIUM-LARGE SCALE DEPOSIT BANKS-TURKEY EXAMPLE
Öz
The aim of the study is to examine the effect of credit risk on bank profitability. In the study, a sample of 13 medium-large scale banks are used for the 2009-2020 period. Panel data analysis is performed with the fixed time effect model for the estimation of the empirical model. Non-performing loans are used as a measure of credit risk and return on assets is used as an indicator of bank performance. Additionally, in accordance with the literature, control variables related to capital adequacy, balance sheet structure, income-expenditure structure and liquidity structure are added to the model. In line with the literatüre, the findings reveal that credit risk has a negative effect on bank profitability. This study, which was carried out according to the financial statement data bearing the effects of the 2020 pandemic, shows that the negative effect of credit risk on the return on assets for deposit banks in Turkey, does not differ from the results conducted with the 2008 global crisis and 2018 currency crisis data.
Anahtar Kelimeler
Non-performing loans Bank performance Return on assets Credit risk
Kaynakça
- Abbas, F. , Iqbal, S. , Aziz, B. (2019). The impact of bank capital, bank liquidity and credit risk on profitability in postcrisis period: A comparative study of US and Asia. Cogent Economics and Finance 7, 1-18.
- Abdelaziz, H. , Rim, B. , Helmi, H. (2020). The interactional relationships between credit risk, liquidity risk and bank profitability in MENA region. Global Business Review, I-23.
- Ali, M. , Puah, C.H. (2019). The internal determinants of bank profitability and stability. Management Research Review 42, 49-67.
- Boafo, R.O. , Obeng, E. , Addo, J.Y. (2020). The relationship between credit risk management and the profitability of banks in Ghana. Economic Studies and Analysis 14, 92-115.
- Bolarinwa, S.T. , Olayeni, R. O. , Vo, X.V. (2021). Is there a nonlinear relationship between nonperforming loans and bank profitability? Evidence from dynamic panel treshold. Manage Decis Econ 42, 649-661.
- Chary, S.N., Fasi, M. (2019). Non-performing assets in public sector banks-A study. Srusti Management Review 12, 24-32.
- Çelik Kara, A. , Babuşcu, Ş. , Hazar, A. (2021). Türkiye’de büyük ölçekli mevduat bankalarında faiz dışı gelirlerin banka performansına etkisi. İzmir Sosyal Bilimler Dergisi 3, 62-72.
- Eknath, J. H. , Padhye, P. (2016). Non-performing assets of public sector and private sector banks in India: An empirical analysis. Journal of Commerce and Management Thought 7, 298-308.
- Islam, M.N. , Akter, A. , Alam, M.J. , Shahriar, A.H.M. (2020). Analyzing how credit risk influences the performance of commercial banks in Bangladesh: A quantile regression modeling. International Journal of Banking, Risk and Insurance 8, 14-26.
- Jabbouri, I. , Naili, M. (2019). Determinants of nonperforming loans in emerging markets: Evidence from the MENA region. Review of Pacific Basin Financial Markets and Policies 22, 1-33.
- Kaya, P. , Babuşcu, Ş. , Hazar, A. (2021). The determinants of profitability of large scale and small-scale Turkish deposit banks. Journal of Corporate Governance, Insurance, and Risk Management 8, 1-18.
- Kjosevski, J. , Petkovski, M. , Naumovska, E. (2019). Bank-specific and macroeconomic determinants of non-performing loans in the Republic of Macadonia: Comparative analysis of enterprise and household NPLs. Economic Research 32, 1185-1203.
- Laryea, E. Ntow-Gyamfi, M. , Alu, A.A. (2016). Nonperforming loans and bank profitability: Evidence from an emerging market. African Journal of Economic and Management Studies 7, 462-481.
- Mukherjee, T. , Sen, S.S. (2017). Sustainable growth: A study on some selected banks in India. International Journal of Money, Banking and Finance 6, 51-60.
- Nedumparambil, E. , Bhandari, A.K. (2020). Credit risk-return puzzle: Evidence from India. Economic Modelling 92, 195-206.
- Ozili, P.K. (2020). Non-performing loans in European systemic and non-systemic banks. Journal of Financial Economic Policy Modelling 12, 409-424.
- Saleh, I. , Afifa, M.A. (2020). The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from and emerging market. Cogent Economics and Finance 8, 1-13.
- Sanyaolu, W.A. , Siynbola, T.T. , Ogunmefun, G.T. , Makinde, A.B. (2019). Determinants of profitability of Nigerian deposit money banks. Economic Review-Journal of Economics and Bussiness 17, 47-62.
- Serwadda, I. (2018). Determinants of commercial banks’ profitability. Evidence from Hungary. ACTA Universitas Agriculturae Et Silviculturae Mendeliane Brunensis 66, 1325-1335.
- Torres-Reyne, O. (2010). Getting Started in Fixed/Random Effect Models Using R. Princeton University. Retrieved from https://www.princeton.edu/~otorres/Panel101R.pdf
- Tran, D.T.T. , Phan, H.T.T. (2020). Bank size, credit risk and bank profitability in Vietnam. Malaysian Journal of Economic Studies 57, 233-251.
- Uçarkaya, S. , Babuşcu, Ş. , Hazar, A. (2021). Özel ve yabancı sermayeli mervduat bankalarında sermaye yapısının belirleyicileri. Kocatepe İktisadi ve İdari Bilimler Fakültesi Dergisi 23, 112-126.
- Xu, G. , Zhou, Z. (2020). Assessing the efficiency of financial supply chain for Chinese commercial banks: A two-stage AR-DEA model. Industrial Management and Data Systems, Emerald Publishing Limited 0263-5577.
Öz
Çalışmanın amacı, kredi riskinin banka karlılığı üzerindeki etkisini incelemektir. 2009-2020 dönemi için orta-büyük ölçek grubunda yer alan 13 banka örnekleminin kullanıldığı çalışmada, ampirik modelin tahmini için sabit zaman etki modeli ile panel veri analizi yapılmıştır. Kredi riskinin ölçüsü olarak takipteki krediler ve banka performansının göstergesi olarak aktif karlılığı kullanılmıştır. Ayrıca, sermaye yeterliliği, bilanço yapısı, gelir-gider yapısı ve likidite yapısına ilişkin kontrol değişkenleri modele eklenmiştir. Çalışma bulguları, literatürle uyumlu olarak kredi riskinin banka karlılığı üzerinde negatif yönlü etkisi olduğunu ortaya koymaktadır. 2020 pandemi etkisi taşıyan finansal tablo verilerine göre yapılan bu çalışma, Türkiye’deki mevduat bankaları için kredi riskinin aktif karlılığı üzerindeki negatif yönlü etkisinin, 2008 küresel kriz ve 2018 kur krizi verileri ile yapılan çalışma sonuçları ile farklılaşmadığını göstermektedir.
Anahtar Kelimeler
Takipteki krediler Banka Performansı Aktif karlılığı Kredi riski
Kaynakça
- Abbas, F. , Iqbal, S. , Aziz, B. (2019). The impact of bank capital, bank liquidity and credit risk on profitability in postcrisis period: A comparative study of US and Asia. Cogent Economics and Finance 7, 1-18.
- Abdelaziz, H. , Rim, B. , Helmi, H. (2020). The interactional relationships between credit risk, liquidity risk and bank profitability in MENA region. Global Business Review, I-23.
- Ali, M. , Puah, C.H. (2019). The internal determinants of bank profitability and stability. Management Research Review 42, 49-67.
- Boafo, R.O. , Obeng, E. , Addo, J.Y. (2020). The relationship between credit risk management and the profitability of banks in Ghana. Economic Studies and Analysis 14, 92-115.
- Bolarinwa, S.T. , Olayeni, R. O. , Vo, X.V. (2021). Is there a nonlinear relationship between nonperforming loans and bank profitability? Evidence from dynamic panel treshold. Manage Decis Econ 42, 649-661.
- Chary, S.N., Fasi, M. (2019). Non-performing assets in public sector banks-A study. Srusti Management Review 12, 24-32.
- Çelik Kara, A. , Babuşcu, Ş. , Hazar, A. (2021). Türkiye’de büyük ölçekli mevduat bankalarında faiz dışı gelirlerin banka performansına etkisi. İzmir Sosyal Bilimler Dergisi 3, 62-72.
- Eknath, J. H. , Padhye, P. (2016). Non-performing assets of public sector and private sector banks in India: An empirical analysis. Journal of Commerce and Management Thought 7, 298-308.
- Islam, M.N. , Akter, A. , Alam, M.J. , Shahriar, A.H.M. (2020). Analyzing how credit risk influences the performance of commercial banks in Bangladesh: A quantile regression modeling. International Journal of Banking, Risk and Insurance 8, 14-26.
- Jabbouri, I. , Naili, M. (2019). Determinants of nonperforming loans in emerging markets: Evidence from the MENA region. Review of Pacific Basin Financial Markets and Policies 22, 1-33.
- Kaya, P. , Babuşcu, Ş. , Hazar, A. (2021). The determinants of profitability of large scale and small-scale Turkish deposit banks. Journal of Corporate Governance, Insurance, and Risk Management 8, 1-18.
- Kjosevski, J. , Petkovski, M. , Naumovska, E. (2019). Bank-specific and macroeconomic determinants of non-performing loans in the Republic of Macadonia: Comparative analysis of enterprise and household NPLs. Economic Research 32, 1185-1203.
- Laryea, E. Ntow-Gyamfi, M. , Alu, A.A. (2016). Nonperforming loans and bank profitability: Evidence from an emerging market. African Journal of Economic and Management Studies 7, 462-481.
- Mukherjee, T. , Sen, S.S. (2017). Sustainable growth: A study on some selected banks in India. International Journal of Money, Banking and Finance 6, 51-60.
- Nedumparambil, E. , Bhandari, A.K. (2020). Credit risk-return puzzle: Evidence from India. Economic Modelling 92, 195-206.
- Ozili, P.K. (2020). Non-performing loans in European systemic and non-systemic banks. Journal of Financial Economic Policy Modelling 12, 409-424.
- Saleh, I. , Afifa, M.A. (2020). The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from and emerging market. Cogent Economics and Finance 8, 1-13.
- Sanyaolu, W.A. , Siynbola, T.T. , Ogunmefun, G.T. , Makinde, A.B. (2019). Determinants of profitability of Nigerian deposit money banks. Economic Review-Journal of Economics and Bussiness 17, 47-62.
- Serwadda, I. (2018). Determinants of commercial banks’ profitability. Evidence from Hungary. ACTA Universitas Agriculturae Et Silviculturae Mendeliane Brunensis 66, 1325-1335.
- Torres-Reyne, O. (2010). Getting Started in Fixed/Random Effect Models Using R. Princeton University. Retrieved from https://www.princeton.edu/~otorres/Panel101R.pdf
- Tran, D.T.T. , Phan, H.T.T. (2020). Bank size, credit risk and bank profitability in Vietnam. Malaysian Journal of Economic Studies 57, 233-251.
- Uçarkaya, S. , Babuşcu, Ş. , Hazar, A. (2021). Özel ve yabancı sermayeli mervduat bankalarında sermaye yapısının belirleyicileri. Kocatepe İktisadi ve İdari Bilimler Fakültesi Dergisi 23, 112-126.
- Xu, G. , Zhou, Z. (2020). Assessing the efficiency of financial supply chain for Chinese commercial banks: A two-stage AR-DEA model. Industrial Management and Data Systems, Emerald Publishing Limited 0263-5577.
Ayrıntılar
| Birincil Dil | Türkçe |
|---|---|
| Konular | İşletme |
| Bölüm | Makaleler |
| Yazarlar | |
| Yayımlanma Tarihi | 30 Haziran 2022 |
| Gönderilme Tarihi | 25 Ekim 2021 |
| Yayımlandığı Sayı | Yıl 2022 Cilt: 13 Sayı: 1 |
