EVALUATION OF FOREIGN CAPITAL BANKS’ PERFORMANCE IN TURKEY BY CAMELS ANALYSIS

The financial crises in Turkey affect financial performance of banks that are one of the main actors of economy negatively. After the financial crises in our country, foreign banks have bought some of the domestic banks and the number of foreign banks operating in our country has increased day by day. The intense competition required banks to be evaluated their performance by independent institutions and to be determined their current position in the sector. In this respect, banks are aware of their current situation or deficiencies and are better able to improve their policies, know their deficiencies, or improve their current situation. In this sense, CAMELS analysis, which is used both as an on-site and remote monitoring tool that is spreading worldwide on financial markets, is very effective since it first started to be used in USA. The performance of banks is examined under 6 headings. It allows the user who performs the analysis to determine the rates to be used by looking at the status of the banks. In this study, it is aimed to measure the financial performances of 10 foreign banks selected by asset size among the 21 foreign banks operating in our country in 2006 by using CAMELS performance analysis between 2006 and 2016. The reason for the election of foreign capital banks operating in our country is the increasing number of foreign capital banks in our country after many financial crises that live in our country or are affected by our country. Financial performance of these 10 foreign banks selected in our study were measured by using reference values and financial data. The 10 foreign banks selected in our study were found to be effective as financial performance in the period up to 2008, but the financial performances due to the financial crisis between 2009 and 2012 started to recover after 2013 and after 2013. Keywords: Banking, Foreign Capital Banks, CAMELS Performance Analysis Jel Codes: G20, G23, G2