Master'sOpen Access

Asset diversification and risk relationship in Turkish banking sector-2009-2018 term analysis

2020
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Advisor: Doç. Dr. Şenol Babuşcu

Abstract (EN)

Banking sector has a great importance both for the financial sector and for the economy. So, the increase of profitability for banking sector is highly important as well. The literature in this study, we aimed to investigate whether the asset diversity have any impact on riskiness while bank's profitability concerns. Between 1998-2002 studies conducted by Laeven and Levine, asset diversification in financial institutions has been formulated. In our study calculations that we made using the formula developed by Laeven and Levine. In contrast to the literature, in our research, analyzes were conducted to determine whether asset diversification strategies on bank balance sheets had an impact on riskiness or not. In this context, according to the size of assets in the banking sector between 2009-2018, the first 13 banks were listed and included in the analysis. In the quarterly financial data of 13 banks, the ratio of net loans to total assets and asset diversification ratios were compared and analyzed. In conclusion, these analyzes showed that asset diversification is generally inversely related to the growth of credit volume. In addition, it was determined that macroeconomic variables had more effect on the related ratios.

Author

Dr. Kartal Alpay

How to Cite

Kartal Alpay (Master Thesis). Asset diversification and risk relationship in Turkish banking sector-2009-2018 term analysis, 2020, Başkent University.

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