Micro-variables that affect bank profibility: A research on the Turkish banking sector

The aim of this study is; to determine empirically the internal variables at bank level that affect the profitability of Turkish deposit banks for the period of 2009–2017. In the study, return on asset variable is employed as a measure of profitability of deposit banks. According to the findings obtained from the classical panel data analysis method, there are significant relationships between the profitability indicator of the banking sector and financial variables at the bank level. In addition, when the sample of domestic banks and the sample of foreign banks are taken into consideration, it is determined that there is an inverted U-shaped association between the loan-to-deposit ratio and the profitability of deposit banks.