Investigation of the factors affecting the return on assets of domestic and foreign banks in the Turkish banking system with panel data analysis

The development of financial technologies and the new initiatives have led to fundamental changes in the conventional banking system. National and International Banking have a significant role as the development leverage of countries in the new financial period. The banking system has become a means of communication and trust of the world trade to each other. It is aimed to reveal the factors that affecting the active profitability of domestic and foreign banks in the study. In this context, two different models have been established for domestic and foreign banks by using panel data analysis method with 2010-2019 period data. Active profitability was chosen as the dependent variable and capital, operating costs, liquidity, securities portfolio, interest expenses, magnitude, non-performing loans, inflation, Gross National Product growth, sector share and concentration were selected as explanatory variables in practice. As a result of the study, for domestic banks; while it was concluded that capital, securities portfolio, magnitude, interest expenses and inflation positively affected the active profitability; and that liquidity, non-performing loans, size of the sector and density affected the active profitability negatively and also for foreign banks, it was concluded that capital and non-performing loans positively affected the active profitability, while the liquidity and securities portfolio negatively affected the active profitability.