Özet:

The banking sector, which was much less interested in the past, has become a popular research area with the 2008 crisis. The devastating impact of the financial crisis has not been limited to one country and has affected the entire world economy. With the financial institutions lowered their borrowing standards, the subsequent loans increased. The increase in follow-up loans has led to corporate faults and liquidity problems in the banks. To maximize the wealth of shareholders is the primary task of financial institutions. When doing this, financial institutions take a variety of risks. The risk in the banking sector directly affects the economy. Thus, the risks to be taken are a problem not only for the shareholders, but also for the entire economy. With the structure of the economy, small-scale benefit from the loans provided by the banks in the KKTC. Although KKTC banks use risk management strategies, there is an increase in subsequent loans. In the study, the factors that determine the profitability of 17 banks serving in the KKTC were studied by panel data analysis method. The study finds that the following loans have a negative impact on the profitability of the banks in the KKTC. The bank’s size has a positive impact on profitability. In the KKTC, large banks can take advantage of the scale economy and get more profits.

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