The factors affecting the performance of commercial banks operating in Turkish banking sector

In this study, it is aimed to determine the factors influencing the performance of commercial banks operating in the Turkish banking sector during the period covering 2010-2016. Performance models which are created for this purpose are analyzed with static panel data method. Variables such as bank size, bank stability, income diversification, interest income and economic growth affect the return on asset (ROA) positively while variables such as credit risk, operating expenses and inflation rate have negative effects on ROA. In addition, according to the results obtained in the model where return on equity (ROE) is used as a performance measure, ROE is affected by bank size, income diversification, interest incomes, bank age and economic growth positively, whereas ROE is affected by credit risk, operating expenses and inflation rate negatively. Keywords: Turkish Banking Sector, Bank Performance, Asset Profitability, Equity Profitability, Panel Data Analysis