The effects on bank profitability laws of tax in banking sector

Banking sector?s working at a profit has a significant importance in carrying out the mediation functions in financial markets effectively. Profitableness rate is higher in banks having powerful capitals. Currently, the banking sector?s capital capacity rate?s appearing in high value consistent with standards protect the bank?s capitals from internal and external risks. The importance of high capital rates is inevitable at bank profitableness appearing in high value and become an assurance element for deposit owners.There are many factors affecting bank?s profitableness. In this study, after explaining the bank profitableness, main factors that affect profitableness and the structure of banking system; banking sector which keeps an important position in financial system and at the same time their mediation functions in terms of collecting the taxes in public finance, their responsibility in taxation and their situation in tax laws are tried to be explained. Banks, as they have an important position in financial system and are seen as reliable institutions by the government regarding tax proceed, have to be promoted in national economy with regulations of laws, and their procedurs have to be maintained with the lowest costs. Thus, banks working at higher profits will cause a rise in fund accumulation in economy and an acceleration of economic growth.In the application part of our study, the effects on their profitableness that paying taxs of deposit banks is searched by using cointegration and causality analyses. With the result of application, it is determined that, there is a long term relationship between taxs and profitableness; also taxs are the reasons for the changes of being appeared profitableness.