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This paper applies a novel time series-based additive nonparametric quantile regression technique to stress test the credit risk of conventional and participation banks in Turkey. We particularly examine the effects of the exchange rate, unemployment rate, the policy interest rate, and the public debt-to-GDP ratio on the non-performing loan ratio (NPL) of Turkish banks at distinct quantile levels. We find that their effects are heterogeneous and significantly vary across different types of banks and quantiles. Overall, participation banks are more vulnerable to negative scenarios associated with the exchange rate, unemployment rate, and public debt ratio than conventional banks. [ABSTRACT FROM AUTHOR]

As a crucial component of the financial sector, banks play an intermediary role in creating and providing financial services to customers. Therefore, the evaluation of banking sector activity is important for stakeholders and managers. This paper investigates the key criteria in analyzing bank performance and efficiency and the relative performance of Turkish banks in terms of the pre-determined criteria during 2008–2018. This study aims to introduce a robust and easy-to-calculate mathematical model for estimating bank performance using stepwise regression and TOPSIS methods. The TOPSIS ranking of banks from the best to the worst allows establishing that the bank with the highest mean score is Akbank (AB), while Ziraat Bank (ZB) and Garanti Bank (GB) follow AB over the period. The results of the stepwise regression analysis show that managing non-performing loans and expenses (both personnel and interest expenses) are critical to high performance in the banking sector.

Abstract Purpose This study empirically analyzes whether the rapid growth of loans and risk-taking behavior during the expansion of loans affected non-performing loans (NPLs) and the solvency of financial institutions in the Turkish banking system. Design/methodology/approach Using the GMM Generalized Method of Moments, this study used data on Turkish banks from 2011 to 2017 to test two hypotheses on the effects of loan growth on NPLs and solvency. Findings This study finds significant results for the effect of loan growth on NPLs and solvency. NPLs rose from the previous year’s loan growth, which tended to reduce solvency. Research limitations/implications Due to selected research methods, the results may lack generality. Therefore, future studies should test the propositions herein further. Practical implications The results indicate that careful allocation behavior is required when lending. Additionally, these findings may be helpful to financial managers and decision makers. Originality/value This study confirms the need to determine how to allocate loans during the loan boom periods.

By using data from thirteen publicly traded commercial and deposit banks this paper estimates the determinants of market risk for banks' equities in the case of an emerging market economy, Turkey. The analysis reveals that maturity composition of banks' loans, share of trading income in banks' overall revenue stream and its foreign-ownership structure are important indicators of the volatility of its equity returns. Banks with shorter loan maturity positions are regarded by investors as safer companies to invest in while increases in trading income as a source of banks' overall revenue increases the volatility of its equity returns. Foreign ownership of a bank also lowers its equity return risk.

Purpose – The aim of this paper is to investigate and define the competitive positioning of banks including state-owned, domestic and foreign banks operating in Istanbul, Turkey. The aim is to check the competitive marketplace and to identify the major quality attributes, which bankers themselves and their customers used in determining the overall perception of a given bank and services offered. Design/methodology/approach – The investigation was held in Istanbul, Turkey. In total, 30 banks were included in the research, which includes state-owned, local and foreign-owned banks. A total of 1,530 questionnaires were submitted, answers collected and analyzed. Reliability test and frequency analysis were used to analyze the data. Findings – From the banks' customers' point of view, determinants relating to functional quality or how the customers wish to receive banking services became evident. It also became clear that customers of banks are not fully receiving what they want or need and their expectations, especially on the most important attributes of quality, are not being met. Research limitations/implications – The survey showed how the banks were selected and including their employees in relation to the other competitors' banks in the Turkish banking industry. Originality/value – The paper demonstrates an integrated technology, use of staff talent and streamlined operations that respond to customer needs and encourage customers to use the whole range of banking products/services rather than only a few as the end game. The results were used by bank staff later on to reengineer and redesign creatively their positioning strategy and the future direction for creating more effective quality strategies. [ABSTRACT FROM AUTHOR]

This study aims to explore the influence of human resource management (HRM) activities and organizational climate on job satisfaction in Turkish banks. The study first examines the relative influence of eight HRM activities of: (i) behavior and attitudes (in recruitment and selection); (ii) teamwork; (iii) extensive training; (iv) written policies; (v) training in multiple functions; (vi) incentives; (vii) performance appraisal; and (viii) feedback on performance on job satisfaction. Second, the influence of six factors relating to organizational climate are examined, again from the view point of their influence on job satisfaction. The second group factors are: (i) support for innovation; (ii) managerial competence and consistency; (iii) workload pressure; (iv) cohesion; (v) organizational boundaries; and (vi) organizational ethics. The data collected through interviews from 346 employees from 19 banks show that in addition to the positive impact of HRM activities, organizational climate in particular makes a significant contribution to job satisfaction. The paper presents the influence of the two groups of factors on job satisfaction and the mechanisms through which these factors foster job satisfaction and their implications for practitioners. [ABSTRACT FROM AUTHOR]

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Bank for International Settlements (BIS) proposes that all banks calculate and report amount of market risk they incur and allocate sufficient amount of capital starting at the beginning of year 2002. BIS also suggests that value-at-risk (VaR) models in computing market risk should be used. The Turkish Bank Regulation and Supervision Agency already required all Turkish banks to compute and periodically report market risk and reserve adequate amount of capital since January, 2002. This study mimics an average trading marketable securities portfolio subject to market risk of the four largest Turkish banks. The publicly available quarterly financial reports of year 2001 for Isbank, Garanti, Yapi Kredi and Akbank are examined, and a mimicking portfolio composition is determined as bond investments; 60% in Turkish currency (TRL), 20% in American dollar (USD) and 20%in Euro (EUR). TheVaR amounts of the mimicking portfolio are computed by applying Historical Simulation, Monte Carlo Simulation, Delta-Normal and Standard Methods. Finally, stress test is applied for each of the models by using crisis scenarios. The Turkish financial crises of November 2000 and February 2001 are simulated as stress scenarios. The results of stress testing reveal that all methods except standard method can stand the crisis in November 2000, but none of the models can stand the crisis in February 2001. [ABSTRACT FROM PUBLISHER]

Turkish banks are quite heterogeneous in terms of organizational form, ownership structure, size, age, portfolio concentration, growth prospects and attitude toward risk. They also exhibit strong variations in performance as measured by several efficiency indices. In the light of theoretical advances in corporate finance and financial institutions, this paper is an in-depth cross-sectional analysis of the Turkish banking sector, which explores the various bank, market and regulatory characteristics that may explain the efficiency variations across banks. Consistent with the related hypotheses investigated, the results indicate that a number of independent bank characteristics are significantly correlated with various efficiency measures. [ABSTRACT FROM AUTHOR]

The history of the word Bank; It comes from "Banco" which means counter in Italian. The biggest contribution to the development of Commercial Banking is belonging to Lombard People. Lombard usurers, by giving their services to British entrepreneurs, in the middle of London in England, have served as a foundation to the historical development of Commercial Banking. Banks are the institutions that; canalise the funds to the group who wants fund, supply investment opportunities and undertake important functions in financial system with its effectiveness in economy (1). Banks have an important place in commercial life. Banks which find a place of activity also in capital market are bound by Capital Markets Law and Notifications in terms of capital market activities. For bank's being organisations of confidence, they have precise contributions to the people to appear in capital market. [ABSTRACT FROM AUTHOR]