Abstract:

Many institutions including banks, insurance companies, factoring companies, and financial leasing companies among others operate in today's Turkish financial system. Despite such diversity, banks stand out with a share of 85% in the total asset size of the sector. This shows the importance of banks in the national financial system. A disruption in the banks and the wider banking sector may cause crises in the overall economy. Therefore, the forces tasked with the design of the national financial system and ensuring the healthy functioning of the system, have a great inclination on the efficiency and stability of the banks and the sector. As a result, they strive to create a suitable environment for banks to function efficiently. This study aims to comparatively examine the financial status of deposit banks traded in Borsa Istanbul using the CAMELS analysis for the period of 2008-2017. The results show that the bank with the best financial position in general was Akbank, and that the one with the weakest financial outlook was Sugarbank. When the components are broken down, Akbank is the most stable bank in terms of C (capital adequacy), M (management quality) and L (liquidity). Denizbank was identified as the bank with the most powerful position in terms of A (asset quality), Garanti Bank with E (earnings-profitability) and Business Bank with S (market risk sensitivity). On the other hand, concerning the banks with the weakest positions by components, Halkbank was the weakest in component C, Business Bank in A, QNB Finansbank in components M and S, ICBC Turkey Bank in E and Sugarbank in component component L are prominent.

Abstract:

Many institutions including banks, insurance companies, factoring companies, and financial leasing companies among others operate in today's Turkish financial system. Despite such diversity, banks stand out with a share of 85% in the total asset size of the sector. This shows the importance of banks in the national financial system. A disruption in the banks and the wider banking sector may cause crises in the overall economy. Therefore, the forces tasked with the design of the national financial system and ensuring the healthy functioning of the system, have a great inclination on the efficiency and stability of the banks and the sector. As a result, they strive to create a suitable environment for banks to function efficiently. This study aims to comparatively examine the financial status of deposit banks traded in Borsa Istanbul using the CAMELS analysis for the period of 2008-2017. The results show that the bank with the best financial position in general was Akbank, and that the one with the weakest financial outlook was Şekerbank. When the components are broken down, Akbank is the most stable bank in terms of C (capital adequacy), M (management quality) and L (liquidity). Denizbank was identified as the bank with the most powerful position in terms of A (asset quality), Garanti Bank with E (earnings-profitability) and İş Bank with S (market risk sensitivity). On the other hand, concerning the banks with the weakest positions by components, Halkbank was the weakest in component C, İş Bankası in A, QNB Finansbank in components M and S, ICBC Turkey Bank in E and Şekerbank in component component L are prominent. 

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