The banking sector, the importance of which cannot be denied in the development of national economies, may be subject to many internal or macroeconomic factors that can cause vulnerability. On December 1, 2019, the adverse effects of the covid 19 pandemic, which started in Wuhan, China and spread all over the world in a brief period, revitalized the importance of the financial fragility problem in the Turkish banking sector as well as in the banking sectors of other countries around the world. This study it is aimed to analyze the relationship levels of the endogenous factors associated with financial vulnerability in the Turkish-Pakistani banking sector with the data for the period of 2016-2020 based on two countries. For this purpose, the micro variables of 24 deposit banks operating in the Turkish banking sector and 23 deposit banks operating in the Pakistani banking sector were determined as return on assets, interest margin, return on equity, liquidity, and financial leverage. Financial vulnerability is defined as the capital adequacy ratio and correlation and regression analyses were conducted to identify the relationship with micro variables. In the literature review, it has been observed that studies and research have been undertaken on financial vulnerability and stability in the Turkish banking sector and in different countries. However, these studies are mainly regional assessments rather than comparisons between two different countriesın this context, the evaluation of the vulnerability of the banking sectors of the two countries in the covid 19 process indicates that this study is distinct from the others. In addition, this comparison of the financial vulnerability levels of banks in the event of a possible crisis in the banking sector of the two countries is intended to assist similar academic studies and to enrich and diversify the literature.
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