Analysis of banks' financial performance in parallel of selected macro indicators: The case of Turkey

The interaction between financial development and macro variables have been examined in many studies. In the studies, generally the credit increase/decrease is used as the variable on the banking side. The dominant view of the studies in this field is, there is interaction between financial development and macroeconomic development. The study has not aimed the unique effect of the rise or decrease in the funds of the funds provided to the markets, but to examine the final result in the selected macro variables by CAMELS which is one of the evaluation methods of the banking sector by modification of its parameters. Unemployment has often been used as a parameter when studying increase or depression in economies. Capacity Utilization Rate of Manufacturing Industry and the profitability of the non-bank sector are the variables used for this purpose. In the study, before looking at statistical results of interactions, the products which constitute performance of banks are given briefly. Then it has been also briefly been mentioned about other micro and macro-level factors and other rating systems used in the world and customer preferences affecting banking performance. Analysis and evaluations about whether the CAMELS analysis method used in the study is in suitable with the Turkish banking system and fully reflects performances of banks or not, are included in the scan of literature. In the last chapter, it has been examined interactions between the change of final result of performance in the banking sector in Turkey and the unemployment, non-bank sector profitability change rate, capacity utilization rate of manufacturing industry.