IDEAS home Printed from https://ideas.repec.org/a/ris/buecrj/0083.html
   My bibliography  Save this article

Determination of the Optimal Level of Lending in Turkish Banking Sector

Author

Listed:
  • Poyraz, Erkan

    () (Mugla University)

Abstract

Banking sector has a great importance in a national economy. Banks provide the vital function of mobilizing savings from those who have it and allocating such savings to those who wish to borrow to invest in economic development. When these two cardinal functions are not effectively provided by a country’s banking institutions, then its economic performance is seriously hampered. Main duty of banks is to accept deposits and channel those deposits into lending activities, either directly or through capital markets. In this study it is tried to determine if there is any correlation between the level of lending and the level of profitability. In addition to that, optimal level of lending is tried to be determined. Total lendings / total assets which is the best indicator of asset quality is accepted as independent variable and net income / total asset (return on assets), net income / equity (Return on equity) are accepted as dependent variable. Between those variables regression and correlation analyse are done

Suggested Citation

  • Poyraz, Erkan, 2012. "Determination of the Optimal Level of Lending in Turkish Banking Sector," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 3(2), pages 1-41, April.
  • Handle: RePEc:ris:buecrj:0083
    as

    Download full text from publisher

    File URL: http://www.berjournal.com/determination-of-the-optimal-level-of-lending-in-turkish-banking-sector
    File Function: Full text
    Download Restriction: no

    More about this item

    Keywords

    Bankings; Lending; Profitability ratios; Financial performance;

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:buecrj:0083. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adem Anbar). General contact details of provider: http://edirc.repec.org/data/iiulutr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.