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An Empirical Analysis of the Determinants of Net Interest Margins of Turkish Listed Banks: Panel Data Evidence from Post-Crisis Era

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  • Özcan IŞIK
  • Murat BELKE

Abstract

The aim of this study is to explore both the bank-specific and macroeconomic drivers of net interest margins using panel data techniques for a sample of 12 deposit banks publicly traded on the Borsa Istanbul over the post-crisis period 2010-2015. Our panel data results suggest that while bank size and managerial efficiency affect net interest margins negatively and significantly, operating cost, credit risk, and implicit interest payments influence the NIMs positively and significantly in the postcrisis era. The results also imply that macroeconomic indicators such as economic growth and inflation do not have any significant effects on the NIMs.

Suggested Citation

  • Özcan IŞIK & Murat BELKE, 2017. "An Empirical Analysis of the Determinants of Net Interest Margins of Turkish Listed Banks: Panel Data Evidence from Post-Crisis Era," Sosyoekonomi Journal, Sosyoekonomi Society, issue 25(34).
    • Handle: RePEc:sos:sosjrn:170412
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    Cited by:

    1. Ozcan Is k & Merve Kosaroglu & Ayhan Demirci, 2018. "The Impact of Size and Growth Decisions on Turkish Banks' Profitability," International Journal of Economics and Financial Issues, Econjournals, vol. 8(1), pages 21-29.
    2. Md. Shahidul Islam & Shin-Ichi Nishiyama, 2020. "The Determinants of Net Interest Margins of Commercial Banks: Panel Evidence from China, India and Japan," Discussion Papers 2014, Graduate School of Economics, Kobe University.
    3. Ulaş Ünlü & Furkan Yıldırım & Ayhan Kuloğlu & Ersan Ersoy & Emin Hüseyin Çetenak, 2022. "Nexus between Renewable Energy, Credit Gap Risk, Financial Development and R&D Expenditure: Panel ARDL Approach," Sustainability, MDPI, vol. 14(23), pages 1-19, December.

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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