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Impact of Non-Interest Income on Bank Performance for Large-Scale Deposit Banks in Turkey

Year 2021, Volume: 3 Issue: 1, 62 - 72, 30.06.2021

Aylin Çelik Kara Şenol Babuşçu Adalet Hazar

https://doi.org/10.47899/ijss.20213106
Cited By: 4

Abstract

Traditional function of deposit banks was used to be a mediation for the supply and demand of funds. In this context, the most important income source is the interest income. However, since the 2000s, in line with technological advancement, increasing competition, decreasing net interest margins and profit margins, banks started to provide many services other than deposit and loan transactions. As a result of these, the income and product diversity of deposit banks increased. This increase in product diversity has led to an increase in non-interest income from non-traditional activities. In this concept, the aim of this study is to determine the effect of non-interest income on the financial performance of deposit banks. The scope of this study is taking into account seven large-scale deposit banks operating in Turkey. As a result of the analysis using the panel data method, it was determined that the non-interest income has positive effect on bank performance which is measured by return on assets and return on equity; has negative effect on net interest margin.

Keywords

Non-interest income bank performance return on assets return on equity net interest margin

References

  • Akgüç, Ö. (2007). Banka Yönetimi ve Performans Analizi. İstanbul: Arayış Basım ve Yayıncılık.
  • Alper, D. , Anbar, A. Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Turkey. Bussiness and Economics Research Journal Vol 2, No 2, 139-152.
  • Atasoy, H. (2007). Türk Bankacılık Sektöründe Gelir-Gider Analizi ve Karlılık Performansının Belirleyicileri. Araştırma ve Yayınlar, Türkiye Cumhuriyet Merkez Bankası, Ankara.
  • Atik, M. (2019). Türk Bankacılık Sektöründeki Faiz Dışı Gelirlerin Banka Geliri ve Riski Üzerindeki Etkisinin Ölçülmesi. Muhasebe ve Finansman Dergisi 81, 271-292.
  • Batten, J. ,Vo, X. (2016). Bank Risk in Shifitng and Diversification in an Emerging Market. Risk Management 18, 217-235.
  • Batten, J. ,Vo, X. (2019). Determinants of Bank Profitability-Evidence from Vietnam. Emerging Markets Finance and Trade 55, 1417-1428.
  • Baum, C. , Çağlayan, M., Xu, B. (2020). The Impact of Uncertainty on Financial Institutions: A Cross Country Study. Int Journal of Finance and Economics 2020, 1-21.
  • Bhatia A., Mahajan, P. , Chander, S. (2012). Determinants of Profitability of Private Sector Banks in India. Journal of Commerce and Accounting Research Vol 1 Issue 2, 14-23.
  • Bian, W. , Wang, X. , Sun, Q. (2015). Non-interest Income, Profit, and Risk Efficiencies: Evidence from Commercial Banks in China., Asia-Pacific Journal of Financial Studies 44, 762-782.
  • Brunnermeier, M. , Dong, X. , Palia, D. (2020). Banks’ Noninterest Income and Systemic Risk. The Review of Corporate Finance Studies 9, 229-255.
  • Chen, C. , Huang, Y. , Zhang, T. (2017). Non-interest Income, Trading, and Bank Risk. Journal of Financial Services Research 51, 19-53.
  • Demirgüç-Kunt, A. , Huizinga, H. (2009). Bank Activity and Funding Strategies The Impact on Risk and Returns. World Bank Policy Research Working Paper 4837.
  • Hidayat, W. , Kakinaka, M., Miyamoto, H. (2012). Bank Risk and Non-Interest Income Activities in the Indonesian Banking Industry. IUJ Reseach Insititute Economics and Management Series 03.
  • Kamani, E. (2019). The Effect of Non-traditional Banking Activities on Sytemic Risk: Does Bank Size Matter?. Finance Reseacrh Letters 30, 297-305.
  • Koch, T.W. , Macdonald, S.S. (2014). Bank Management. Boston: Cengage Learning.
  • Köhler, M. (2013). Does Non-Interest Income Make Banks More Risky? Retail –versus Inverstmen-oriented Banks. Borsa İstanbul Review No 17.
  • Louzis, D. , Vouldis, A. (2017). Profit Strategy of Greek Banks: Cross-subsidization and Diversification versus Complementarity. Applied Economics Vol 49, No 44, 4460-4481.
  • Mahajan, P., Bhatia, A. , CHANDER,S. (2012). ROA Performance of Public Sector Banks in India. Journal of Commerce and Accounting Research Vol 1, Issue 2, 15-21.
  • Meng, X., Cavoli, T. , Deng, X. (2018). Determinants of Income Diversification: Evidence from Chinese Banks., Applied Economics Vol. 50, No 17, 1934-1951.
  • Menicucci, E., Paolucci, G. (2016). The Determinants of Bank Profitability: Empirical Evidence from European Banking Sector., Journal of Financial Reporting and Accounting Vol. 14, No 1, 86-115.
  • MINH, S. ve THANH, T. ve DENG, X. (2020). Analysis of the Impact from Non-interest Income to the Operational Efficiency of Commercial Banks in Vietnam. Management Science Letters 10, 455-462.
  • Nguyen, T.H. (2020). Impact of Bank Capital Adequacy on Bank Profitability Unde Basel II Accord: Evidence from Vietnam. Journal of Economic Development 45, 31-47.
  • Robertho, V. , Wibowo, B. (2018). Market Power, Types of Ownership and Bank Income Diversification: Cases of Asian Countries. Jurnal Dinamika Manajemen 9 (1) , 12-22.
  • Selçuk, H. , Tunay, K.B. (2014). Ticati Banka Yönetiminin Temelleri. Ankara: Nobel Akademik Yayıncılık Eğitim Danışmanlık Tic.Ltd. Şti.
  • Stiroh, K. (2018). Diversification in Banking is Noninterest Income the Answer?.Federal Reserve Bank of New York Working Paper, No: 154.
  • Torres-Reyna, O. (2010). Getting Started in Fixed/Random Effect Models Using R. Princeton University. Retrieved from https://www.princeton.edu/~otorres/Panel101R.pdf
  • Uzun, U. ve Berberoğlu, M. (2019). Faiz Dışı Gelirlerin Banka Performansına Etkisi. Türkiye Örneği. Journal of Bussiness Research-TURK 11, 239-248.
  • Wang, C. ve Lin, Y. (2018). The Influence of Income Diversification on Operating Stability of the Chinese Commercial Banking Industry. Romanian Journal of Economic Forecasting XXI (3) 38 (1), 29-41.
  • Williams, B. ve Rajaguru, G. (2012). The Chicken or the Egg? The Trade-off Between Bank Fee Income and Net Interest Margins. Australian Journal of Management 38 (1), 99-123.
  • Yağcılar, G.G. , Kalaycı, Ş. (2020). Türk Bankacılık Sektöründe Net Faiz Marjının Micro-Belirleyicileri: Küresel Mali Krizin Etkileri. Karadeniz Teknik Üniversitesi Sosyal Bilimler Enstitüsü Sosyal Bilimler Dergisi 19, 7-34.

Türkiye’deki Büyük Ölçekli Mevduat Bankalarında Faiz Dışı Gelirlerin Banka Performansına Etkisi

Year 2021, Volume: 3 Issue: 1, 62 - 72, 30.06.2021

Aylin Çelik Kara Şenol Babuşçu Adalet Hazar

https://doi.org/10.47899/ijss.20213106
Cited By: 4

Abstract

Mevduat bankalarının geleneksel işlevi, fonların arz ve talebine aracılık etmektir. Bu bağlamda en önemli gelir kaynakları faiz geliridir. Ancak, 2000'li yıllardan itibaren teknolojik gelişme, artan rekabet, azalan net faiz marjları ve kar marjlarına paralel olarak bankalar mevduat ve kredi işlemleri dışında çeşitli hizmetler sunmaya başlamışlardır. Bunların sonucunda mevduat bankalarının gelir ve ürün çeşitliliği artmıştır. Ürün çeşitliliğindeki bu artış, geleneksel olmayan faaliyetlerden faiz dışı gelire yönelmelerine neden olmuştur. Bu gelişmeler dikkate alındığında çalışmanın amacı, faiz dışı gelirin mevduat bankalarının finansal performansı üzerindeki etkisini belirlemektir. Çalışmanın kapsamını Türkiye'de faaliyet gösteren yedi büyük ölçekli mevduat bankası oluşturmaktadır. Panel veri analizi yöntemi kullanılarak yapılan çalışma sonucunda faiz dışı gelirin, aktif kârlılığı ve özkaynak kârlılığı üzerinde olumlu; net faiz marjı ile olumsuz yönde etkisi olduğu tespit edilmiştir.

Keywords

faiz dışı gelir banka performansı aktif karlılığı özkaynak karlılığı net faiz marjı

References

  • Akgüç, Ö. (2007). Banka Yönetimi ve Performans Analizi. İstanbul: Arayış Basım ve Yayıncılık.
  • Alper, D. , Anbar, A. Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Turkey. Bussiness and Economics Research Journal Vol 2, No 2, 139-152.
  • Atasoy, H. (2007). Türk Bankacılık Sektöründe Gelir-Gider Analizi ve Karlılık Performansının Belirleyicileri. Araştırma ve Yayınlar, Türkiye Cumhuriyet Merkez Bankası, Ankara.
  • Atik, M. (2019). Türk Bankacılık Sektöründeki Faiz Dışı Gelirlerin Banka Geliri ve Riski Üzerindeki Etkisinin Ölçülmesi. Muhasebe ve Finansman Dergisi 81, 271-292.
  • Batten, J. ,Vo, X. (2016). Bank Risk in Shifitng and Diversification in an Emerging Market. Risk Management 18, 217-235.
  • Batten, J. ,Vo, X. (2019). Determinants of Bank Profitability-Evidence from Vietnam. Emerging Markets Finance and Trade 55, 1417-1428.
  • Baum, C. , Çağlayan, M., Xu, B. (2020). The Impact of Uncertainty on Financial Institutions: A Cross Country Study. Int Journal of Finance and Economics 2020, 1-21.
  • Bhatia A., Mahajan, P. , Chander, S. (2012). Determinants of Profitability of Private Sector Banks in India. Journal of Commerce and Accounting Research Vol 1 Issue 2, 14-23.
  • Bian, W. , Wang, X. , Sun, Q. (2015). Non-interest Income, Profit, and Risk Efficiencies: Evidence from Commercial Banks in China., Asia-Pacific Journal of Financial Studies 44, 762-782.
  • Brunnermeier, M. , Dong, X. , Palia, D. (2020). Banks’ Noninterest Income and Systemic Risk. The Review of Corporate Finance Studies 9, 229-255.
  • Chen, C. , Huang, Y. , Zhang, T. (2017). Non-interest Income, Trading, and Bank Risk. Journal of Financial Services Research 51, 19-53.
  • Demirgüç-Kunt, A. , Huizinga, H. (2009). Bank Activity and Funding Strategies The Impact on Risk and Returns. World Bank Policy Research Working Paper 4837.
  • Hidayat, W. , Kakinaka, M., Miyamoto, H. (2012). Bank Risk and Non-Interest Income Activities in the Indonesian Banking Industry. IUJ Reseach Insititute Economics and Management Series 03.
  • Kamani, E. (2019). The Effect of Non-traditional Banking Activities on Sytemic Risk: Does Bank Size Matter?. Finance Reseacrh Letters 30, 297-305.
  • Koch, T.W. , Macdonald, S.S. (2014). Bank Management. Boston: Cengage Learning.
  • Köhler, M. (2013). Does Non-Interest Income Make Banks More Risky? Retail –versus Inverstmen-oriented Banks. Borsa İstanbul Review No 17.
  • Louzis, D. , Vouldis, A. (2017). Profit Strategy of Greek Banks: Cross-subsidization and Diversification versus Complementarity. Applied Economics Vol 49, No 44, 4460-4481.
  • Mahajan, P., Bhatia, A. , CHANDER,S. (2012). ROA Performance of Public Sector Banks in India. Journal of Commerce and Accounting Research Vol 1, Issue 2, 15-21.
  • Meng, X., Cavoli, T. , Deng, X. (2018). Determinants of Income Diversification: Evidence from Chinese Banks., Applied Economics Vol. 50, No 17, 1934-1951.
  • Menicucci, E., Paolucci, G. (2016). The Determinants of Bank Profitability: Empirical Evidence from European Banking Sector., Journal of Financial Reporting and Accounting Vol. 14, No 1, 86-115.
  • MINH, S. ve THANH, T. ve DENG, X. (2020). Analysis of the Impact from Non-interest Income to the Operational Efficiency of Commercial Banks in Vietnam. Management Science Letters 10, 455-462.
  • Nguyen, T.H. (2020). Impact of Bank Capital Adequacy on Bank Profitability Unde Basel II Accord: Evidence from Vietnam. Journal of Economic Development 45, 31-47.
  • Robertho, V. , Wibowo, B. (2018). Market Power, Types of Ownership and Bank Income Diversification: Cases of Asian Countries. Jurnal Dinamika Manajemen 9 (1) , 12-22.
  • Selçuk, H. , Tunay, K.B. (2014). Ticati Banka Yönetiminin Temelleri. Ankara: Nobel Akademik Yayıncılık Eğitim Danışmanlık Tic.Ltd. Şti.
  • Stiroh, K. (2018). Diversification in Banking is Noninterest Income the Answer?.Federal Reserve Bank of New York Working Paper, No: 154.
  • Torres-Reyna, O. (2010). Getting Started in Fixed/Random Effect Models Using R. Princeton University. Retrieved from https://www.princeton.edu/~otorres/Panel101R.pdf
  • Uzun, U. ve Berberoğlu, M. (2019). Faiz Dışı Gelirlerin Banka Performansına Etkisi. Türkiye Örneği. Journal of Bussiness Research-TURK 11, 239-248.
  • Wang, C. ve Lin, Y. (2018). The Influence of Income Diversification on Operating Stability of the Chinese Commercial Banking Industry. Romanian Journal of Economic Forecasting XXI (3) 38 (1), 29-41.
  • Williams, B. ve Rajaguru, G. (2012). The Chicken or the Egg? The Trade-off Between Bank Fee Income and Net Interest Margins. Australian Journal of Management 38 (1), 99-123.
  • Yağcılar, G.G. , Kalaycı, Ş. (2020). Türk Bankacılık Sektöründe Net Faiz Marjının Micro-Belirleyicileri: Küresel Mali Krizin Etkileri. Karadeniz Teknik Üniversitesi Sosyal Bilimler Enstitüsü Sosyal Bilimler Dergisi 19, 7-34.
There are 30 citations in total.

Details

Primary Language Turkish
Subjects Finance
Journal Section Original Research Articles
Authors

Aylin Çelik Kara 0000-0001-5589-1312

Şenol Babuşçu 0000-0003-2870-6358

Adalet Hazar 0000-0002-1483-8360

Publication Date June 30, 2021
Published in Issue Year 2021 Volume: 3 Issue: 1

Cite

APA Çelik Kara, A., Babuşçu, Ş., & Hazar, A. (2021). Türkiye’deki Büyük Ölçekli Mevduat Bankalarında Faiz Dışı Gelirlerin Banka Performansına Etkisi. İzmir Sosyal Bilimler Dergisi, 3(1), 62-72. https://doi.org/10.47899/ijss.20213106

Cited By

DAHA FAZLA EKONOMİK ÖZGÜRLÜK, DAHA YÜKSEK PERFORMANS? TÜRKİYE ÖRNEĞİ
Anadolu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
https://doi.org/10.53443/anadoluibfd.1277068
Türk Bankacılık Sektöründe Faiz Dışı Gelirler ve Banka Performans İlişkisinin İncelenmesi
Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi
https://doi.org/10.37880/cumuiibf.1196021
The impact of capital adequacy on the profitability of Turkish deposit banks in the period before and after the implementation of Basel II
İktisadi ve İdari Bilimler Fakültesi Dergisi
https://doi.org/10.33707/akuiibfd.1128039
ORTA-BÜYÜK ÖLÇEKLİ MEVDUAT BANKALARINDA KREDİ RİSKİNİN AKTİF KARLILIĞINA ETKİSİ-TÜRKİYE ÖRNEĞİ
Akademik Yaklaşımlar Dergisi
https://doi.org/10.54688/ayd.1014405
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