Comparison of financial soundness of participation and deposit banks with the Bankometer S-Score model

The aim of this study is to examine the financial soundness of participation and deposit banks operating in Turkey with the help of the Bankometer S-Score method, which has just started to be used in the literature. In addition, the financial soundness levels of participation and deposit banks are also compared in the study. In the study, the financial soundness of thirty-one banks in total, including five participation banks and three state-owned, eight private-owned, fifteen foreign-owned deposit banks operating in Turkey between 2016 and 2022 Dec, are analyzed. In order to protect countries from bank-related risks, it is a requirement that banks' financial soundness analyses, such as bank performances, are carried out for certain periods of time and that banks are constantly kept under control. In this context, in a developing country such as Turkey, it is considered important to measure the financial soundness of participation and deposit banks with the Bankometer S-Score and to examine the results by comparing them. When the findings of the study were examined in general, it was observed that all banks had S Scores above 70. This situation shows that all banks are financially strong, their payability is high and they are resistant to financial crises. On the average, it has been observed that deposit banks generally occupy the leading position. It has also been determined that banks with foreign capital are in the leading position among deposit banks.