The effect of foreign direct flows on Turkish banking sector performance indicators analysis with CAMELS and OLS methods

The impact of globalization, technological advances, the desire to obtain more returns and the regulations for financial liberalization were directly influential in the increase of capital movements. The sector that is most affected by these develop-ments and attracts foreing direct investment is the banking sector. Our study consists of two parts; in the first movement of foreign direct in-vestment came to Turkey with the aim of assessing the impact on the financial per-formance of banks operating in Turkey 2008-2017 period, 11 deposit banks a com-parative analysis was made CAMELS. According to the results of the analysis it was determined that the financial performances of foreing and especially Public banks were higher. Then the analysis of the direct foreign capital movements, which cons-titute the second part of the study, has been carried out by means of OLS methods to test whether the effect of foreign capital movements on CAMELS. It was conclu-ded that foreign direct capital movements had an impact on CAMELS. The most important contribution of this study is that the CAMELS analysis which shows the financial performance of banks provides a new perspective to the literatüre, whether the study shows the effect of direct foreign capital movements.