Determinants of profitability in domestic and foreign banks in Turkey

ABSTRACT: The most important instrument of financial system for the future of the economy is the profitability of banking sector. The goal of this research is to determine the specific bank factors that impact the profitability of 14 commercial banks in Turkish banking sector for the period of 2005-2011. The data are collected into two groups: Privately owned domestic and foreign Banks. Profitability measures are the operation of specific of bank that used to measure the bank performance. The bank specific determinants that effect the profitability are equity/total assets, total loans/total assets, interest income/interest expense, liquid assets/total assets, total assets and interest expense/deposit. Keywords: Profitability, Turkish, Banking. …………………………………………………………………………………………………………………………