Determination of the relationship between non-performing loans and profitability in the Turkish banking system with panel regression analysis

Koten, Aysegul Berrak

doi:10.17261/pressacademia.2021.1478

Cited by 3 publications

(3 citation statements)

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“…A one percent increase in non-performing loans results in a decrease of 0.323 units of net profit for commercial banks in Nepal. Martiningtiyas and Nitinegeri (2020), Koten (2021), andBhattarai (2015) supported this conclusion, but Charisma et al (2022) found the insignificant impact of NPLs on net profit. Similarly, one unit increase in return on assets is associated with a 0.234 unit increase in net profit of Nepalese commercial banks.…”

Section: Fixed Effect Model Of Regression Analysismentioning

confidence: 83%

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Does the Staff Bonus Fund Decrease the Net Profit? Empirical Insights from Nepalese Commercial Banks

Bhattarai,

Dahal,

Budhathoki

2023

Nep. J. Multidisc. Res.

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This study investigates the impact of staff bonus funds, return on assets (ROA), and non-performing loans (NPLs) on Nepalese commercial banks' net profit. It also compares the individual effects of independent variables on the net profit of commercial banks. The unbalanced panel data of 11 commercial banks were gathered from various central bank reports and economic surveys of Nepal. It employs a descriptive and exploratory research design. To investigate the relationship between dependent and independent variables, statistical and econometric tools such as summary statistics, association analysis, Johnsen- Fisher and Kao co-integration test, Hausman, Breusch-Pagan, Chow test, and standardized panel fully modified ordinary least square (PFMOLS) are used. Non-performing loans hurt the calculation of net profit. The net profit of Nepal's commercial banks drops by 0.323 units for every one percent increase in non-performing loans. Similarly, a 0.234 unit increase in Nepalese commercial banks' net profit is linked to every unit increase in return on assets. The staff bonus fund is more responsible for increasing commercial banks' net profit than return on assets. This study assists policymakers in determining that employee bonuses are not only an expense but also a profit-generating tool for motivating and attracting skilled individuals. It contributes to developing appropriate strategies to reduce non-performing loans and boost the ROA of Nepalese commercial banks.

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Section: Fixed Effect Model Of Regression Analysismentioning

confidence: 83%

“…They found that NPL has a negative and ROA has a positive effect on the financial performance of commercial banks. Koten (2021) examined the relationship between NPL and the profitability of Turkish commercial banks. He found that NPL has a significant but negative effect on the net profit.…”

Section: Review Of Literaturementioning

confidence: 99%

Does the Staff Bonus Fund Decrease the Net Profit? Empirical Insights from Nepalese Commercial Banks

Bhattarai,

Dahal,

Budhathoki

2023

Nep. J. Multidisc. Res.

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“…Baş et al (2021) found that the increase in interest rates and total loan volume for 2008 and 2017 will increase non-performing loans. Koten (2021), in his analysis for the period of 2010-2020, concluded that the increase in the nonperforming loan rates of banks decreases the profitability ratios over time. In his research for the 2002 and 2017 periods, Us (2020) found that non-performing loans were negatively affected by capital adequacy, profitability and economic growth while positively affected by inflation, unemployment, external debt stock, lending and bank size.…”

Section: Literature Reviewmentioning

confidence: 99%

Türkiye’de Sektörel Batık Krediler Döngüsü: Ampirik Bir Analiz

Akça

2023

Sosyoekonomi

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This study examines how much of the total loans are in follow-up and which sectors have difficulties repaying these loans, using the monthly data from the post-2000 period using the Event Study method. Undoubtedly, banks’ loans to the sectors are the most basic investment element. It is a significant problem on which sectors these loans are concentrated on and the contribution of these sectors to the country's economy, and their effects on the economy. Another critical problem is the recycling problem in the payment of loans extended by banks. This situation, called non-performing loans in short, is of great importance in terms of being the leading indicator of crises. The research findings showed significant increases in almost all selected sectors in the pre-crisis, crisis, and post-crisis periods. From this point of view, the rate of growth in non-performing loans of banks provides some predictions about the general course of the economy.

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Exploring the bearing of liquidity risk in the Middle East and North Africa (MENA) banks

Abu Khalaf,

Awad

2024

Cogent Economics & Finance

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Determination of the relationship between non-performing loans and profitability in the Turkish banking system with panel regression analysis

Cited by 3 publications

References 0 publications

Does the Staff Bonus Fund Decrease the Net Profit? Empirical Insights from Nepalese Commercial Banks

Does the Staff Bonus Fund Decrease the Net Profit? Empirical Insights from Nepalese Commercial Banks

Türkiye’de Sektörel Batık Krediler Döngüsü: Ampirik Bir Analiz

Exploring the bearing of liquidity risk in the Middle East and North Africa (MENA) banks

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