TURKISH BANKING SECTOR PERFORMANCE ANALYSES
TURKISH BANKING SECTOR PERFORMANCE ANALYSES

Summary/Abstract: This study evaluates the weaknesses and strengths of the Turkish banking sector by using the techniques of DuPont analysis and CAMELS rating from 2001 to 2017. The effects and results of the banking sector reconstruction program implemented after the 2001 financial crisis and Turkey’s attempt to become European Union member are also investigated and evaluated under the same time span. In general, due to financial recovery policies implemented after the 2001 economic crisis, the banking industry has had improvements and has become stronger as the performance gap between the analyzed units have converged over time. Traditional ratio analyses are found to be consistent with advanced models. Foreign banks performance is the worst of all. State owned deposit banks in the Turkish banking sector are performing better than their competitors. In order to maintain a solid and sustainable system, successful policies must continue. Also, supervisory transparency should be increased.

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