The effect of shadow bankıng on the performance of the Turkısh bankıng sector

Shadow banking, which is a part of the banking sector, has taken its place in the Turkish banking system with its impact on risk management and performance. It is seen that the importance of this system has increased in our country, especially after the 2008 World economic crisis. In this study, shadow banking has been examined through derivative financial instruments, commitments, escrow and pledged assets, and the effects of banks on return on assets, net interest margin and return on equity between 2010 and 2019 were investigated. According to the results of dynamic panel data analysis, it has been observed that shadow banking practices not only protect banks against the risk of bankruptcy, but also positively affect their profitability. Key Words: Shadow Banking, Off Balance Sheet Transactions, Bank Performance, GMM