The Effects of Structured Credits on Bank Profitability in the Turkish Banking Sector

The intermediation function of the banking sector has significant effects on economic growth. Therefore, the performance of the banking system is important for the finance sector as well as for the economy. Factors affecting the profitability ratios are distinguished as bank spesific ratios and macroeconomic variables in the literature. In our study, the analysis was made by adopting the mentioned distinction and it was examined whether the structured credits have any impact on ROA and ROE. The static panel data analysis was used to analyze 13 banks operating in the banking sector between 2010-2017 for quarterly period data. In conclusion, we determined that the structuring of the loans has no effect on ROA and ROE. For this reason, it is necessary to take into account this information while determining the bank policies. According to the results of the analyses, macroeconomic variables such as inflation, GDP and interest rates; and bank-specific variables such as asset quality, capital ratio and liquidity level have significant effects on ROA and ROE