The Assessment of Bank Efficiency and Profitability: Recent Evidence from the Turkish Banking Sector, 2008 - 2013

The recent estimation techniques with a broad balanced panel dataset are used in this study to estimate bank efficiency and profitability. Within a two-stage framework, the Stochastic Frontier Analysis (SFA) is employed in the initial stage to estimate bank efficiency that also becomes an independen...

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Main Author: Onder, Bostanci
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2014
Online Access:https://eprints.nottingham.ac.uk/27499/
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author Onder, Bostanci
author_facet Onder, Bostanci
author_sort Onder, Bostanci
building Nottingham Research Data Repository
collection Online Access
description The recent estimation techniques with a broad balanced panel dataset are used in this study to estimate bank efficiency and profitability. Within a two-stage framework, the Stochastic Frontier Analysis (SFA) is employed in the initial stage to estimate bank efficiency that also becomes an independent variable to a second stage where the determinants of bank profitability are explored. In the second stage, the Instrumental Variables/Generalized Method of Moments (IV/GMM) estimator is used to analyse how bank-specific characteristics, macroeconomic variables, and industry-specific factors affect the profitability of 22 commercial banks that operate in Turkey over the period of 2008 - 2013. In each stage, several interesting results are found. The results show that bank efficiency reflected the state of the banking sector during the study period, with a gap persisting between the best and worst performing banks. Furthermore, the profitability determinants vary quite widely across the different levels of significance, sign and size of the effect. The level of bank efficiency has thus an important impact on bank profitability.
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spelling nottingham-274992017-10-19T14:04:34Z https://eprints.nottingham.ac.uk/27499/ The Assessment of Bank Efficiency and Profitability: Recent Evidence from the Turkish Banking Sector, 2008 - 2013 Onder, Bostanci The recent estimation techniques with a broad balanced panel dataset are used in this study to estimate bank efficiency and profitability. Within a two-stage framework, the Stochastic Frontier Analysis (SFA) is employed in the initial stage to estimate bank efficiency that also becomes an independent variable to a second stage where the determinants of bank profitability are explored. In the second stage, the Instrumental Variables/Generalized Method of Moments (IV/GMM) estimator is used to analyse how bank-specific characteristics, macroeconomic variables, and industry-specific factors affect the profitability of 22 commercial banks that operate in Turkey over the period of 2008 - 2013. In each stage, several interesting results are found. The results show that bank efficiency reflected the state of the banking sector during the study period, with a gap persisting between the best and worst performing banks. Furthermore, the profitability determinants vary quite widely across the different levels of significance, sign and size of the effect. The level of bank efficiency has thus an important impact on bank profitability. 2014-09-18 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/27499/1/ONDER_BOSTANCI_BANK_EFFICIENCY_AND_PROFITABILITY_IN_TURKEY_.pdf Onder, Bostanci (2014) The Assessment of Bank Efficiency and Profitability: Recent Evidence from the Turkish Banking Sector, 2008 - 2013. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Onder, Bostanci
The Assessment of Bank Efficiency and Profitability: Recent Evidence from the Turkish Banking Sector, 2008 - 2013
title The Assessment of Bank Efficiency and Profitability: Recent Evidence from the Turkish Banking Sector, 2008 - 2013
title_full The Assessment of Bank Efficiency and Profitability: Recent Evidence from the Turkish Banking Sector, 2008 - 2013
title_fullStr The Assessment of Bank Efficiency and Profitability: Recent Evidence from the Turkish Banking Sector, 2008 - 2013
title_full_unstemmed The Assessment of Bank Efficiency and Profitability: Recent Evidence from the Turkish Banking Sector, 2008 - 2013
title_short The Assessment of Bank Efficiency and Profitability: Recent Evidence from the Turkish Banking Sector, 2008 - 2013
title_sort assessment of bank efficiency and profitability: recent evidence from the turkish banking sector, 2008 - 2013
url https://eprints.nottingham.ac.uk/27499/