The effect of shadow banking technics on profitability of Turkish Banking System

This study is prepared to measure the impact of the shadow banking system on the profitability of the Turkish Banking System. Although there is no definite definition of the system in the literature and the size of the system varies according to the definition, the shadow banking system constitutes an important part of the whole financial system. It is observed that the studies on shadow banking in the literature have increased in the literature since the crises 2008. In this study, the emergence of shadow banking, its conceptual framework is examined in regard to its positive and negative aspects and in the end, the effect of shadow banking on the profitability of the Turkish banking system is analyzed. It is found that the shadow-banking operations yield an increase in the profitability of banks.