Effects of foreign banks on real sector loans and banking sector profitability: BRICS-T case

In terms of national economies, the real sector and the banking sector are the two most important interrelated sectors. The banking sector plays a major role in deepening and developing fund relations in the country. Developments in the banking sector are considered to have a significant impact on the real sector. In this study, it has been investigated whether the entry of foreign capital banks operating in banking sector has an effect on both banking and real sector. The period 2006 and 2016 was chosen as the period. In this study, panel data analysis was performed using two different models. Firstly; The relationship between foreign bank assets and loans to real sector has been examined. Then, the relations between foreign bank assets and bank asset profitability were examined. In the results of working; It is concluded that there is a meaningless relationship between the first model, foreign bank assets and loans to the real sector, and the second model, which is a significant and positive relationship between the assets of the foreign banks and the profitability of the banking sector.