Investigation with panel data analysis of the factors affecting the profitability of banks in Turkey

Banks in Turkey are organizations that have the largest share in terms of assets in the financial sector and the sector's main actors are. In order for both the financial markets and the economy to function effectively, the banks must be sound and profitable. Therefore, determining what factors affect the profitability of the banks increases their significance in terms of multi-faceted consequences. In this study, the profitability determinants of 15 deposit banks operating in the Turkish banking sector between 2002 and 2016 were analyzed by panel data analysis based on the variables of asset profitability, equity profitability and net interest margin. The main determinants of asset profitability are size, equity, other operating expenditures and concentration variables, size and liquidity variables that determine the main sources of profitability of the equity, and the main determinants of net interest margin are equity, non-interest income, other operating expenses, inflation and interest. Keywords: Bank Profitability, Turkish Banking Sector, Panel Data Analysis, Deposit Banks