An Analysis of the effect of inflation on banks profits

îî SUMMARY Banks are the financial institutions established to as a bridge function between those supplying funds and those demanding funds. Banks which are indispensible institutions for money and capital markets, have been affected by the economic developments of the past 20 years especially inflation. In this study, for the purpose of being able to aee the effect of inflation on banks. The proportional changes by year of principal balance sheets and income item were examined and then real developments were found by extrac ting present data from inflation. Statistical data published by the annual banking series of the Turkish Banks' Union were used in the calculations. The results derived from the prepared schedules were comparatively evaluated. tC YÜKSEKÖ?RETİM KURULU nAvftUAUTACVOM imKExi