The Relationship Between Liqudity And Profitability In Banking Sector: A Practice In Borsa Istanbul

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 12

Year of Publication : 2019

Authors : Dr. Sıdıka Öznur SAKINÇ

10.14445/23939125/IJEMS-V6I12P120

How to Cite?

Dr. Sıdıka Öznur SAKINÇ, "The Relationship Between Liqudity And Profitability In Banking Sector: A Practice In Borsa Istanbul," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 12, pp. 184-189, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I12P120

Abstract:

The banking sector plays an important role in the guidance of both national and international economic events. The banks are usually the first institutions referred by the financial sector as well as the real sector in finding sources of funds. It has become a requirement for a strong economy that
banks have solid financial structures. Liquidity management has an important share in both providing continuity and increasing effectiveness in banking sector just like in the other sectors, and it also affects profitability. In this study, the relationship between the liquidity and profitability of 12 banks operating in Borsa İstanbul (BİST) is analyzed during the period of 2007-2017 by using panel data regression analysis. As a result of the analysis, it is seen that there is an increase in profitability when liquidity increases and vice versa.

Keywords:

Banking sector, Liquidity, Liquidity Risk, Profitability, Panel Data Regression Analysis.

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