Income diversification and bank performance: Evidence from Turkish banking sector

descriptionPublicationkeyboard_double_arrow_right Article 01 Jan 2013 Turkey Turkish Publisher:BDDK Bankacılık ve Finansal Piyasalar DergisiJournal:Journal of BRSA Banking and Financial Markets, volume 7, pages 9-29

Authors: Ali Osman GURBUZ; Serhat YANIK; Yusuf AYTURK;

handle: 11467/9259

Income diversification and bank performance: Evidence from Turkish banking sector

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Abstract

Bu çalışmada, faiz dışı gelir yaratan faaliyetler (gelir çeşitlendirmesi) ve riske göre düzeltilmiş banka performansı arasındaki ilişki, Türk mevduat bankalarına ait 20052011 dönemi yıllık verileri kullanılarak incelenmektedir. Bu çalışmada, sistem genel momentler yöntemi (Sistem- GMM) tahmincileri, 26 bankanın yer aldığı dengesiz bir panel veri setiyle kullanılmaktadır. Ampirik sonuçlarımız, gelir çeşitlendirmesinin Türk mevduat bankalarının riske göre düzeltilmiş finansal performansını arttırdığını göstermektedir.

In this study, relationship between non-interest income generating activities (income diversification) and risk-adjusted bank performance is investigated by using yearly data of Turkish deposit banks for the period of 2005 – 2011. System Generalized Method of Moments (System-GMM) estimators are used in this study with an unbalanced panel dataset of 26 banks. Our empirical results indicate that income diversification increases risk-adjusted financial performance of Turkish deposit banks.

Country

Turkey

Related Organizations

Istanbul Commerce University
Turkey

Keywords

Income diversification, Turkish banking sector, non-interest income, System-GMM, Türk Bankacılık Sektörü, Turkish Banking Sector, Sistem-GMM, Gelir Çeşitlendirmesi, Income Diversification, Non-Interest Income, Faiz Dışı Gelir, System-GMM, jel: jel:G10, jel: jel:G21, jel: jel:G28

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