Presenter Information

Halit Targan Unal
Neslihan Ozdemir

Session

Management, Business and Economics

Description

Recently, movements in the financial markets have demonstrated that management of net interest margin (NIM) is important for the well functioning of the financial sector in general and banking sector in particular. In this regard, net interest margin (NIM) accepted as the main indicator of financing balance and profitability of the banking sector and hence its stability and improved capacity for financing of sustainable real economic growth. According to literature, asset, liability and equity structure, non-interest income such as fees & commission, market concentration and efficiency, quality of management and some economic variables have been considered as factors affecting the NIM. This paper mainly investigates the relationship of NIM of the selected banking groups in Turkey with the macroeconomic, market and banking sector specific variables. It has also been identified whether the ownership affect the reaction of the NIM to explanatory variables.

Keywords:

Interest Margin in Turkey, Interest Rate Risk, NIM and Resilience.

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-550-47-5

Location

UBT Kampus, Lipjan

Start Date

30-10-2021 12:00 AM

End Date

30-10-2021 12:00 AM

DOI

10.33107/ubt-ic.2021.537

Included in

Business Commons

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Oct 30th, 12:00 AM Oct 30th, 12:00 AM

Net Interest Margin [NIM] in Turkish Financial Sector

UBT Kampus, Lipjan

Recently, movements in the financial markets have demonstrated that management of net interest margin (NIM) is important for the well functioning of the financial sector in general and banking sector in particular. In this regard, net interest margin (NIM) accepted as the main indicator of financing balance and profitability of the banking sector and hence its stability and improved capacity for financing of sustainable real economic growth. According to literature, asset, liability and equity structure, non-interest income such as fees & commission, market concentration and efficiency, quality of management and some economic variables have been considered as factors affecting the NIM. This paper mainly investigates the relationship of NIM of the selected banking groups in Turkey with the macroeconomic, market and banking sector specific variables. It has also been identified whether the ownership affect the reaction of the NIM to explanatory variables.