Skip to main content
SpringerLink
Log in
Book cover

Management Strategies to Survive in a Competitive Environment pp 173–185Cite as

Generating Innovative Financial Strategies for Turkish Deposit Banks

  • Chapter
  • First Online:

  • 1293 Accesses

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

The time cost of money is the most important issue in the financial sector. Reducing this cost is one of the most significant goals of the real sector, economy, and public. In terms of bank capitalists, maximizing profitability and increasing the value of the bank company is the primary goal. In this sense, factors affecting profitability are important. While banks are developing innovative strategies, it is vital to determine which ones have a direct impact on profitability. The study focused on the variables affecting the profitability of bank deposits in Turkey. For this purpose, 17 commercial banks operating in Turkey are evaluated. In this study, the panel regression analysis method was used. Thanks to the analysis results to be obtained, innovative strategies have been determined in order to increase the profitability of the banks. The findings indicate that Turkish banks are mainly subject to interest rate risks. For this purpose, loans with flexible interest rates can be an appropriate innovative strategy for these banks. With the help of this implementation, banks can get the opportunity to increase interest income when there is an increase in the interest rate.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   139.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   179.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   179.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Acar-Balaylar, N., & Özdemir, M. O. (2018). Türkiye’de Yabancı Sermayeli Mevduat Bankalarında Sermaye Yeterliliği ve Kârlılık İlişkisi. Sosyoekonomi, 26(36), 209–224.

    Article  Google Scholar 

  • Ambrose, B. W., Fuerst, F., Mansley, N., & Wang, Z. (2019). Size effects and economies of scale in European real estate companies. Global Finance Journal, 42, 100470.

    Article  Google Scholar 

  • Asadullah, M. (2017, November). Determinants of profitability of Islamic banks of Pakistan–a case study on Pakistan’s Islamic banking sector. In International Conference on Advances in Business, Management and Law (ICABML) 2017 (Vol. 1).

    Google Scholar 

  • Bikker, J. A., & Vervliet, T. M. (2018). Bank profitability and risk-taking under low interest rates. International Journal of Finance & Economics, 23(1), 3–18.

    Article  Google Scholar 

  • Black, L., Correa, R., Huang, X., & Zhou, H. (2016). The systemic risk of European banks during the financial and sovereign debt crises. Journal of Banking & Finance, 63, 107–125.

    Article  Google Scholar 

  • Bora, A., & Arslan, E. (2017). Türkiye’de Kurulmuş Yabancı Sermayeli Bankaların 2015 Yılındaki Performanslarının Oran Analizi Yöntemi ile İncelenmesi. PESA Uluslararası Sosyal Araştırmalar Dergisi, 3(1), 6–32.

    Google Scholar 

  • Burke, Q. L., Warfield, T. D., & Wieland, M. M. (2020). Value relevance of disaggregated information: An examination of the rate and volume analysis of bank net interest income. Accounting Horizons, 34(1), 19–43.

    Article  Google Scholar 

  • Çalışır, M., & Bengisu, B. (2018). Türkiye’de Finansal Sektörde Faaliyet Gösteren Bankaların Performanslarının Veri Zarflama Yöntemi ile Analizi. Journal of Kastamonu University Faculty of Economics and Administrative Sciences, 20(4), 172, 200.

    Google Scholar 

  • Çatıkkaş, Ö., Yatbaz, A., & Duramaz, S. (2017) Basel Sermaye Yeterliği Oranındaki Değişimin Türk Bankacılık Sektörü Üzerindeki Etkilerinin İncelenmesi: Katılım Bankaları ve Geleneksel Bankaların Karşılaştırmalı Oran Analizi1.

    Google Scholar 

  • Çetin, A. (2018). Katιlιm ve Mevduat Bankalarιnιn Piyasa Etkinliğinin Karşιlaştιrmalι Analizi ve Bir Uygulama. Türkiye Bankalar Birliği, Yayın No, 328.

    Google Scholar 

  • Chattha, J. A., & Alhabshi, S. M. S. J. (2017). Risk management in changing benchmark rates regime: Prudential implications for Islamic banks and supervisors. Journal of Islamic Finance, 6, 205–230.

    Article  Google Scholar 

  • Claessens, S., Coleman, N., & Donnelly, M. (2018). “Low-for-long” interest rates and banks’ interest margins and profitability: Cross-country evidence. Journal of Financial Intermediation, 35, 1–16.

    Article  Google Scholar 

  • Cornett, M. M., Erhemjamts, O., & Tehranian, H. (2016). Greed or good deeds: An examination of the relation between corporate social responsibility and the financial performance of US commercial banks around the financial crisis. Journal of Banking & Finance, 70, 137–159.

    Article  Google Scholar 

  • Dang, C., Li, Z. F., & Yang, C. (2018). Measuring firm size in empirical corporate finance. Journal of Banking & Finance, 86, 159–176.

    Article  Google Scholar 

  • Delis, M. D., & Kouretas, G. P. (2011). Interest rates and bank risk-taking. Journal of Banking & Finance, 35(4), 840–855.

    Article  Google Scholar 

  • Dinçer, H., Hacıoğlu, Ü., & Yüksel, S. (2017). A strategic approach to global financial crisis in banking sector: A critical appraisal of banking strategies using fuzzy ANP and fuzzy topsis methods. International Journal of Sustainable Economies Management (IJSEM), 6(1), 1–21.

    Article  Google Scholar 

  • Dinçer, H., & Mengir, A. (2020). Innovative call center applications focused on financial marketing in the Turkish banking sector. In Handbook of research on decision-making techniques in financial marketing (pp. 145–171). IGI Global.

    Google Scholar 

  • Dinçer, H., & Yüksel, S. (2018). Comparative evaluation of BSC-based new service development competencies in Turkish banking sector with the integrated fuzzy hybrid MCDM using content analysis. International Journal of Fuzzy Systems, 20(8), 2497–2516.

    Article  Google Scholar 

  • Dinçer, H., Yüksel, S., & Çetiner, İ. T. (2019). Strategy selection for organizational performance of Turkish banking sector with the integrated multi-dimensional decision-making approach. In Handbook of research on contemporary approaches in management and organizational strategy (pp. 273–291). IGI Global.

    Google Scholar 

  • Dinçer, H., Yüksel, S., Eti, S., & Tula, A. (2019). Effects of demographic characteristics on business success: An evidence from Turkish banking sector. In Handbook of research on business models in modern competitive scenarios (pp. 304–324). IGI Global.

    Google Scholar 

  • Elamer, A. A., Ntim, C. G., Abdou, H. A., & Pyke, C. (2019). Sharia supervisory boards, governance structures and operational risk disclosures: Evidence from Islamic banks in MENA countries. Global Finance Journal, 100488.

    Google Scholar 

  • Eti, S., Kalkavan, H., Dinçer, H., & Yüksel, S. (2020). Predicting the role of Islamic banking on sustainable economic development: An analysis for Turkey with ARIMA model. In Handbook of Research on Creating Sustainable Value in the Global Economy (pp. 146–164). IGI Global.

    Google Scholar 

  • Fontana, A., & Scheicher, M. (2016). An analysis of euro area sovereign CDS and their relation with government bonds. Journal of Banking & Finance, 62, 126–140.

    Article  Google Scholar 

  • Gong, D., Huizinga, H., & Laeven, L. (2018). Nonconsolidated affiliates, bank capitalization, and risk taking. Journal of Banking & Finance, 97, 109–129.

    Article  Google Scholar 

  • Hasan, I., Jackowicz, K., Kowalewski, O., & Kozłowski, Ł. (2017). Do local banking market structures matter for SME financing and performance? New evidence from an emerging economy. Journal of Banking & Finance, 79, 142–158.

    Article  Google Scholar 

  • Hirtle, B., Kovner, A., Vickery, J., & Bhanot, M. (2016). Assessing financial stability: The capital and loss assessment under stress scenarios (CLASS) model. Journal of Banking & Finance, 69, S35–S55.

    Article  Google Scholar 

  • Home-Ortiz, J. M., Vargas, R., Macedo, L. H., & Romero, R. (2019). Joint reconfiguration of feeders and allocation of capacitor banks in radial distribution systems considering voltage-dependent models. International Journal of Electrical Power & Energy Systems, 107, 298–310.

    Article  Google Scholar 

  • Hunjra, A. I. I., Faisal, F., Abdeen, Z. U., Kamal, A., Ghufran, M., & Bashir, A. (2017). The asset and liabilities gap management of conventional and Islamic Banks: An empirical study of Pakistan, UAE, Malaysia, and Bahrain.

    Google Scholar 

  • Isik, O. (2017). Türkiye’de Faaliyet Gösteren Kamu, Özel Ve Yabancı Sermayeli Ticari Bankaların Karlılığının İçsel Belirleyicileri. Journal of Economics, Finance and Accounting (JEFA), 4(3), 342–353.

    Google Scholar 

  • Işık, Ö., Yalman, İ. N., & Koşaroğlu, Ş. M. (2017). Türkiye’de Mevduat Bankalarının Kârlılığını Etkileyen Faktörler1.

    Google Scholar 

  • Isshaq, Z., Amoah, B., & Appiah-Gyamerah, I. (2019). Non-interest income, risk and bank performance. Global Business Review, 20(3), 595–612.

    Article  Google Scholar 

  • Kalkavan, H., & Ersin, I. (2019). Determination of factors affecting the south east Asian crisis of 1997 probit-logit panel regression: The south east Asian crisis. In Handbook of research on global issues in financial communication and investment decision making (pp. 148–167). IGI Global.

    Google Scholar 

  • Karkowska, R. (2020). Business model as a concept of sustainability in the banking sector. Sustainability, 12(1), 111.

    Article  Google Scholar 

  • Koç, İ. (2018). Interest rate risk in interest-free banks: An empirical research on Turkish participation banks. TUJISE, 5(1), 89.

    Article  Google Scholar 

  • Küçükbay, F. (2017). Banka Kârlılığını Etkileyen Faktörler: Avrupa Birliği Bankaları Ve Türk Bankaları Arasında Karşılaştırma. Yönetim ve Ekonomi: Celal Bayar Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 24(1), 137–149.

    Google Scholar 

  • Kusi, B. A., Agbloyor, E. K., Gyeke-Dako, A., & Asongu, S. A. (2020). Financial sector transparency and net interest margins: Should the private or public sector lead financial sector transparency?. Research in International Business and Finance, 101260.

    Google Scholar 

  • Mızrak, F., & Yüksel, S. (2019). Significant determiners of Greek debt crisis: A comparative analysis with Probit and MARS approaches. International Journal of Finance & Banking Studies (2147–4486), 8(3), 33–50.

    Article  Google Scholar 

  • Molyneux, P., Reghezza, A., & Xie, R. (2019). Bank margins and profits in a world of negative rates. Journal of Banking & Finance, 107, 105613.

    Article  Google Scholar 

  • Okuyan, H. A., & Karataş, Y. (2017). Türk Bankacılık Sektörünün Kârlılık Analizi. Ege Academic Review, 17(3).

    Google Scholar 

  • Özşuca, E. A. (2018). Türkiye’de Banka Sermaye Tamponları, Kredi Büyümesi Ve İş Çevrimleri. Business & Management Studies: An International Journal, 6(2).

    Google Scholar 

  • Pehlivan, E. (2018). Finansal oranları kullanarak bankaların performanslarının değerlendirilmesi. Başkent Üniversitesi Fen Bilimleri Enstitüsü: Master’s thesis.

    Google Scholar 

  • Rahman, M. M. (2020). Islamic micro-finance programme and its impact on rural poverty alleviation. International Journal of Banking and Finance, 7(1), 119–138.

    Google Scholar 

  • Sukmana, R., Ajija, S. R., Salama, S. C. U., & Hudaifah, A. (2020). Financial performance of rural banks in Indonesia: A two-stage DEA approach. Heliyon, 6(7), e04390.

    Article  Google Scholar 

  • Tunay, N., Yüksel, S., & Tunay, K. B. (2019). The effects of technology on bank performance in advanced and emerging economies: An empirical analysis. In Handbook of research on managerial thinking in global business economics (pp. 263–280). IGI Global.

    Google Scholar 

  • Uludağ, A. S., & Ece, O. (2018). Türkiye’de Faaliyet Gösteren Mevduat Bankalarının Finansal Performanslarının TOPSIS Yöntemi Kullanılarak Değerlendirilmesi. Finans Politik & Ekonomik Yorumlar, 55(637), 49–80.

    Google Scholar 

  • Yüksel, S., Canöz, İ., & Özsarı, M. (2017). Causality relationship between interest rate of deposit banks and profit share rate of Islamic banks in Turkey. Ikonomika, 2(2), 131–148.

    Article  Google Scholar 

  • Yüksel, S., & Dinçer, H. (2020). SERVQUAL-based performance analysis of agricultural financing in E-banking industry: An evaluation by IT2 fuzzy decision-making model. In Tools and techniques for implementing international E-trading tactics for competitive advantage (pp. 21–41). IGI Global.

    Google Scholar 

  • Yüksel, S., Dinçer, H., & Emir, Ş. (2017). Comparing the performance of Turkish deposit banks by using DEMATEL, Grey relational analysis (GRA) and MOORA approaches. World Journal of Applied Economics, 3(2), 26–47.

    Article  Google Scholar 

  • Yüksel, S., Dinçer, H., & Kıyak, Ö. (2020). Merkez Bankalarının Faiz Politikalarının Döviz Kuru Üzerindeki Etkisinin Belirlenmesi: Türkiye Üzerine Bir Eşbütünleşme ve Nedensellik Analizi. Ekonomi İşletme ve Maliye Araştırmaları Dergisi, 1(4), 335–346.

    Article  Google Scholar 

  • Yüksel, S., & Kavak, P. T. (2019). Do financial investment decisions affect economic development?: An analysis on mortgage loans in Turkey. In Handbook of research on global issues in financial communication and investment decision making (pp. 168–191). IGI Global.

    Google Scholar 

  • Yung, K., & Root, A. (2019). Policy uncertainty and earnings management: International evidence. Journal of Business Research, 100, 255–267.

    Article  Google Scholar 

  • Yurttadur, M., & Demirbaş, H. (2017). Türkiye’de Bulunan Katılım Bankaları ve Özel Sermayeli Mevduat Bankalarının Finansal Performanslarının Karşılaştırılması. İstanbul Gelişim Üniversitesi Sosyal Bilimler Dergisi, 4(2), 89–117.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. İstanbul Medipol University, Istanbul, Turkey

    Fahrettin Özdemirci

Authors
  1. Fahrettin Özdemirci
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. School of Business and Management, Istanbul Medipol University, Istanbul, Turkey

    Hasan Dincer

  2. Istanbul Medipol University, Istanbul, Turkey

    Serhat Yüksel

Rights and permissions

Reprints and permissions

Copyright information

© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Özdemirci, F. (2021). Generating Innovative Financial Strategies for Turkish Deposit Banks. In: Dincer, H., Yüksel, S. (eds) Management Strategies to Survive in a Competitive Environment. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-72288-3_12

Download citation

Publish with us

Policies and ethics

Search

Navigation