Impact of Non-Interest Income on Bank Performance for Large-Scale Deposit Banks in Turkey
Journal Title: İzmir Sosyal Bilimler Dergisi - Year 2021, Vol 3, Issue 1
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.
Authors and Affiliations
Aylin ÇELİK KARA, Şenol BABUŞÇU, Adalet HAZAR
Keywords
Related Articles
- EP ID EP705679
- DOI 10.47899/ijss.20213106
- Views 84
- Downloads 0
Assisted Aging: The Future Confluence of Gerontology, Internet of Things and Psychological AI
In this article, we propose a new term, ‘assisted aging’ which is an offshoot of the discussions on assisted living of aging populations. The article consists of 5 major sections: In the first section after introduction,...
A Matter of Proximity: A Case Study on Friendship Network Evolution
The aim of the study is to identify the factors affecting friendship by analyzing evolution of the highly interactive friendship network structure. For this purpose, friendship data were collected from the first year stu...
Siyasal Bilimler ve Uluslararası İlişkiler Alanında Sayısal Malzeme Kullanımı
Bilim tarihi, genel olarak Sözlü, Yazılı, Sayısal dönemlere ayrılmıştır. 1960lı yılları takiben insan hayatına giren bilgisayar ve internet ile birlikte Ses, Yazı ve Görüntü malzemelerinin birlikte kullanıldığı Dijital Ç...
Sustainable development, social protection and responsibility
The goal of sustainable development is achievable through the integration and acknowledgement of environmental, social and economic concerns in all aspects of the decision making and implies favouring learning and develo...
Social Municipality For Disadvantaged Groups In Fighting Covid-19 In Cities: Tr 32 Region Review
Children, young, women, disabled, elderly, poor, homeless, unemployed, ethnic identity, gender, immigration, etc., who don’t have equal conditions and opportunities in social life, are known as disadvantaged groups. Soci...