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Comparative Analysis of the Financial Performance Between Turkish and American Commercial Banks

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  • Fatma Aldirmaz Akkaya

    (Erzincan Binali Yıldırım Üniversitesi, Kemaliye Hacı Ali Akın Uygulamalı Bilimler Yüksekokulu, Erzincan, Türkiye)

Abstract

The banking sector, which facilitates the safekeeping and distribution of resources, is very important for the development of the real economy and financial sector. This requires the strong and consistent performance of the banking sector and requires it to be capable of withstanding unexpected risks. This study aimed to firstLY establish a performance comparison between Turkish and American commercial banks which operated uninterrupted from 2008–2018 and then to present detailed financial performance analysis of the Turkish commercial banks. The CAMELS rating and performance analysis method was chosen for analysis and comparison, given its widespread use in international financial markets. As a result of both the financial performance comparison with the American commercial banks and the financial analysis of only the Turkish commercial banks, it was determined that the Turkish commercial banks, although within acceptable limits, have problems related to financial performance and have not developed sufficient defense against possible shocks. The research also revealed that the loans and receivables of the Turkish commercial banks have been at high level and it was determined that the banks have insufficiently followed these loans. If this problem is resolved, it is believed that it will reduce other issues that the banks face.

Suggested Citation

  • Fatma Aldirmaz Akkaya, 2020. "Comparative Analysis of the Financial Performance Between Turkish and American Commercial Banks," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 70(2), pages 303-338, December.
    • Handle: RePEc:ist:journl:v:70:y:2020:i:2:p:303-338
    DOI: 10.26650/ISTJECON2020-833105
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    References listed on IDEAS

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    1. Rebel Cole & Lawrence White, 2012. "Déjà Vu All Over Again: The Causes of U.S. Commercial Bank Failures This Time Around," Journal of Financial Services Research, Springer;Western Finance Association, vol. 42(1), pages 5-29, October.
    2. Mohamed Rochdi Keffala, 2018. "Analyzing the effect of derivatives on the financial soundness of commercial banks in Italy: An approach based on the CAMELS framework," Review of Financial Economics, John Wiley & Sons, vol. 36(3), pages 267-283, July.
    3. Khaled A. Zedan & Ghassan Daas, 2017. "Palestinian Banks Analysis Using CAMEL Model," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 351-357.
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