Abstract:

The capital-profit relationship in the banking sector is of great importance and the impact of capital-capacity regulations on the profitability and effectiveness of the banking sector and the size of these effects are subject to many studies. In particular, the crises in the U.S. and the U.S. since 2008 have led to a more detailed study of insufficiency in capital regulations, the emergence of crises and their role in growth. When the Turkish Banking Sector is examined, according to many banks operating in developed and developing countries, high capital capacity and profitability ratioes are taken into account. The aim of this study, for the 1980-2017 period, is to study the relationship between the Turkish Banking Sector's capital capacity and the sector profitability. The Turkish Banking Sector has been conducted an econometric study using annual data. In terms of profitability, the ROE and NIM-dependent variables, while in terms of capital adequacy, the equity/collective assets and the equity/collective assets and non-collective resources are used as independent variables. The results obtained in the study show that there are long-term relationships between the respective rates and the profitability indicators that indicate capital adequacy.