The effect of non performing loans and asset sales on collection performance in receivable management

This research was made with purpose of dealing with the sale of non-performing loans in banks to asset management companies and to examine the effects of these loans on the financial ratios of commercial banks and asset management companies. It was examined whether non-performing loans have an impact on the profitability of banks and asset management companies. The panel data analysis method was used in the analysis with using annual data between 2010 and 2020 for the research. Seven dependent variables (Stock Returns, Return on Assets, Return on Equity, Net Profit Margin, Capital Adequacy Ratio, Consumer Loans and Commercial Loans) and one independent variable have been used as non-performing loans for the banks. Also, four dependent variables (Return on Assets, Return on Equity, Net Profit Margin, Net Interest Margin) and one independent variable have been used as non-performing loans for Asset Management Companies. As a result of the study, significant statistical relationship has been determined between the non-performing loans ratio of banks and net profit, return on equity (ROE), return on assets (ROA). Non-performing loans were found to have no effect on the stock returns of banks. No relationship was determined between the independent variable non-performing loans, commercial loans and consumer loans. Commercial loans and consumer loans it has been determined to have an impact on the volume of non-performing loans. A negative relationship was found between non-performing loans and the capital adequacy of commercial banks. When the results are examined for asset management companies, there is a statistically significant relationship between non-performing loans ratio with return on equity, return on assets, net interest margin and net profit margin.