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Nexus of Banks Resilience During Currency Crisis Under IFRS Adoption: Evidence from Commercial Banks in Turkey

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  • Ahmad Abu Alrub

Abstract

Purpose: The aim of this study is to find the effect of movements that measured by term spread of interest rate (TSIR), economic variable which are interest rate (IR) and bank examinations that measured by CAMEL ratio under the adoption of IFRS, would predict the bank resilience for period 2011-2019. Methodology: Dynamic GMM model used to determine which of them can be used to anticipate the eventual bank resilience which measured by Market Concentration (MKC). Findings: The results indicate there is the most negative relationship between MER and MKC and statistically significant, which is the most effective and the least supervisory degree. As result of the currency crisis in 2018, it has a negative impact on MKC in Turkey and statistically significant which is the most effective and the least supervisory degree. Unique Contribution to Theory, Practice and Policy: in this study was the lack of successful bank evaluations and ineffective rate risk controls in Turkey during the financial downturn 2018–2019 for 24 commercial banks and the attribution by bank experts and stakeholders of resilience to the fact that the kind of predictive instruments that could prevent bank resilience’s were unclear and if they might reverse them. Therefore, this paper highlights the importance and the impact of the currency crisis on commercial banks resilience on the market concentration within the IFRS adoption. provides strong incentives for managers to improve bank operations’ profitability to increase efficiency and for policymakers to device policies that support banks of high leverage due to IFRS adoption.

Suggested Citation

  • Ahmad Abu Alrub, 2025. "Nexus of Banks Resilience During Currency Crisis Under IFRS Adoption: Evidence from Commercial Banks in Turkey," Journal of Accounting, CARI Journals Limited, vol. 7(1), pages 1-21.
  • Handle: RePEc:bhx:ojjacc:v:7:y:2025:i:1:p:1-21:id:2441
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