Internal and external determi̇nants of bank profi̇tabi̇li̇ty: Evi̇di̇ence from Turkey

The aim of this study; to determine the internal and external factors that determine the profitability of banks. For this purpose, the data of the banks operating in Borsa Istanbul between 2008-2018 were used. ROA (Return On Assets) and return on equity were used as dependent variable. The independent variables used in the study are internal and external factors specific to the bank. In the empirical analysis, regression and correlation methods were used. As a result of the analysis A positive correlation was determined between ROA and ROE with bank size, equity and credit ratio in assets. In addition, no statistically significant relationship was found between ROA and ROE with loan / deposit ratio and liquid assets / total assets ratio. In addition, a positive and significant relationship was found between inflation rate and economic growth and return on assets and equity.