The effect of financial innovations on performance in the banking sector

The financial markets have developed rapidly since the 1980s, and national bounds. Emerged as a result of internationalization is a process of convergence is composed of a new financial order. In this new market as a result of increased competition and demand for existing centers to develop and renew themselves up to the event, so that the new financial centers and the emergence of new financial products has become inevitable. Advancement of information and communication technologies brought a considerable influence economically and socially over the years. Liberalization of capital movements and especially, advancements in communication technologies elevated financial transactions to global scale by means of electronic markets. Recently, the observed trends in financial markets, financial innovation, which is one main purpose, to make an efficient and competitive markets, to make a profit and reduce risk. They are also the driving factors behind financial innovation is considered. Trends in financial innovation, essentially being results of economic actors' demand for more profit, can be defined as new financial instruments and financial services composed from financial technologies, institutions and markets. The financial sector has a structure of predominantly as banking in Turkey. For this reason, low or high performance shown in the banking sector affects financial system and so that affects the whole economy. In this study, we examined the financial innovations and on the financial performance of the banks effect of these innovations has been investigated using the SPSS package program statistics. In this context, the study's first section of the financial innovation, financial innovation information and communication technology developments in general, and thus preparing the financial innovations mentioned conditions. In the second part, the performance and financial performance concepts, the criterias for measuring the bank performances and the financial performance ratios of the banks are mentioned. In the last part, the performance of the banks operating in the Turkish banking sector in 2015 has been tried to be examined in terms of financial innovations and the data related to the financial performance of the banks have been evaluated statistically.