The impact of domestic and global factors on individual public, domestic and foreign bank performances in Türkiye

Çiçek, Serkan; Yıldırım, Aynur

doi:10.1016/j.cbrev.2023.100139

Cited by 1 publication

(1 citation statement)

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“…Private banks' returns were affected by interest rate fluctuations and risks. However, some emerging countries may have had difficulty adjusting their monetary policy during periods of crisis given the vulnerability of their capital flows [66]. Therefore, in the event of a crisis, banking establishments should ensure access to sufficient levels of liquidity to cover financing costs while adjusting their cost structures and access to new sources of income.…”

Section: Iddmentioning

confidence: 99%

Analysis of Systemic Risk on the Financial Performance during the COVID-19 Pandemic: The Case of the Colombian Banking Industry

Rojas Rincón,

Mejía Martínez,

Riveros Tarazona

et al. 2024

Sustainability

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This study seeks to analyze the financial performance of the Colombian banking industry during the COVID-19 pandemic. The frame of reference is based on the concept of systemic risk; concerning this, the pandemic is conceived as an external shock, which impacted the dynamics of the banking industry. To conduct this study, a descriptive-correlational scope is proposed, from which an analysis of different accounting items related to the banking business is made and validated by expert judgment. The analysis horizon covers six years, but the focus is placed on March 2020, when COVID-19 was declared a pandemic by the World Health Organization (WHO). For this purpose, a longitudinal design is proposed, which analyzes the time series describing the behavior of some relevant items in the management of the banking business, such as operating revenue, provisions, interest on deposits and drawings, valuation of trading derivatives, and technology-related expenses. In addition, these items’ correlation with banking establishments’ performance is analyzed. The results of the study show that during the pandemic period, there was a significant increase in the level of volatility in the foreign exchange market, which impacted the operating revenue of banking establishments. It is concluded that, although exchange rate volatility affected the results of the banking industry, the main factor related to the financial performance of Colombian banks is their business itself, i.e., revenue from the loan portfolio and the quality of the loan portfolio. Therefore, systemic risk must be addressed regarding its implications on banks’ main profit drivers, such as portfolio revenue, cost of deposits, and provisions. Based on the above, it is recommended that Colombian banking establishments make greater efforts to diversify their sources of income to reduce their exposure to systemic risk situations.

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Section: Iddmentioning

confidence: 99%