Financial and strategic overview of the banking system

Abstract

The aim of this study is to give a financial and strategic overview of the Banking System. In the first part the profitability of the banking system in emerging markets is analyzed. The determinants of bank profitability is analyzed with the data from 195 banks from 9 emerging countries between the years 2005-2010 by using the fixed effect panel data. In the second part Turkish Banking System is analyzed from two different perspectives. First the lending relationship between small and medium size enterprises and the banks is studied and then the efficiency of the Turkish banks is examined. The lending relationship between SMEs and banks is analyzed by using the survey data collected from 204 SMEs by using the OLS methodology. Finally the efficiency scores of the 30 commercial banks are measured by using Data Envelopment Analysis (DEA) between the years 2007-2010. The efficiency differences of domestic and foreign banks and the effects of 2008 financial are analyzed.|Keywords : Banking System, Bank Efficiency, Bank Profitability, Bank-SME Relations.