Abstract:

In this study, the application of the Turkish Financial Reporting Standard (TFRS 9) and its impact on credit classification and remuneration in the Turkish banking sector is examined specifically by selected deposit banks operating in the Turkish banking sector. The analysis shows that closely monitored loans and other receipts have increased after the implementation of TFRS 9, but this increase is lower in public banks. In addition, it is noted that in the same period, the percentage of all loans that will be borrowed will also increase, and on the other hand, this increase in the public banks remains more limited. When examined the remuneration rates expected to change with the application of TFRS 9, it is also seen that the banks are separated and public banks, despite their positive appearance in problematic loans, behave cautiously and pay higher remunerations. While the reasons for the application of TFRS 9 have different effects on banks can be easier to identify with the help of micro-level data and anectodal evidence, the analysis based on the existing data indicates the importance of bank ownership. In fact, previous studies on the Turkish banking sector also show the importance of bank ownership in the dynamics of problematic loans, profitability and other important variables. On the other hand, it should be emphasized that the bank ownership factor is not sufficient to explain the observed division between the banks, and that other variables that are specific to the bank, such as the size of the asset, should be taken into account.

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