The Factors Influencing Banks' Risk-Taking Behavior: Evidence from The Turkish Banking Industry
This article empirically analyzes the factors affecting the risk taking of commercial banks in Turkey for the period 2010-2023. Inverse Z score was utilized as a measure of bank risk taking in the developed panel data regression models, while various bank-level and macro-level variables were employe...
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| Format: | Article |
| Language: | English |
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Ekonomi ve Finansal Araştırmalar Derneği
2025-06-01
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| Series: | Ekonomi, Politika & Finans Araştırmaları Dergisi |
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| Online Access: | https://dergipark.org.tr/tr/download/article-file/4633510 |
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| _version_ | 1849423275981012992 |
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| author | Yüksel Aydın Erdal Demir |
| author_facet | Yüksel Aydın Erdal Demir |
| author_sort | Yüksel Aydın |
| collection | DOAJ |
| description | This article empirically analyzes the factors affecting the risk taking of commercial banks in Turkey for the period 2010-2023. Inverse Z score was utilized as a measure of bank risk taking in the developed panel data regression models, while various bank-level and macro-level variables were employed as independent variables. The developed models in this article is estimated separately for the main sample including all banks and the sub-samples formed. According to the results, bank size, bank capital, bank deposit and net interest margin variables tend to reduce the level of bank risk taking in terms of the main sample. However, liquidity risk, credit risk, inflation rate, economic growth and the COVID-19 pandemic crisis tend to increase the level of bank risk taking. Findings from subsamples of listed, non-listed, domestic and foreign banks indicate that bank size, bank capital and net interest margin tend to reduce the level of bank risk taking, which supports the findings from the main sample. Finally, the results of this article have important implications for bank management, regulatory mechanisms and policy makers in terms of controlling the risk-taking behavior of banks, ensuring stability in the banking sector and building a sustainable banking sector. |
| format | Article |
| id | doaj-art-ff77b13a743747a288eceeebab6a9ad3 |
| institution | Kabale University |
| issn | 2587-151X |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Ekonomi ve Finansal Araştırmalar Derneği |
| record_format | Article |
| series | Ekonomi, Politika & Finans Araştırmaları Dergisi |
| spelling | doaj-art-ff77b13a743747a288eceeebab6a9ad32025-08-20T03:30:40ZengEkonomi ve Finansal Araştırmalar DerneğiEkonomi, Politika & Finans Araştırmaları Dergisi2587-151X2025-06-0110263665410.30784/epfad.1645226957The Factors Influencing Banks' Risk-Taking Behavior: Evidence from The Turkish Banking IndustryYüksel Aydın0https://orcid.org/0000-0001-8966-7781Erdal Demir1https://orcid.org/0000-0002-8030-2185SİVAS CUMHURİYET ÜNİVERSİTESİVAN YÜZÜNCÜ YIL ÜNİVERSİTESİ, GEVAŞ MESLEK YÜKSEKOKULUThis article empirically analyzes the factors affecting the risk taking of commercial banks in Turkey for the period 2010-2023. Inverse Z score was utilized as a measure of bank risk taking in the developed panel data regression models, while various bank-level and macro-level variables were employed as independent variables. The developed models in this article is estimated separately for the main sample including all banks and the sub-samples formed. According to the results, bank size, bank capital, bank deposit and net interest margin variables tend to reduce the level of bank risk taking in terms of the main sample. However, liquidity risk, credit risk, inflation rate, economic growth and the COVID-19 pandemic crisis tend to increase the level of bank risk taking. Findings from subsamples of listed, non-listed, domestic and foreign banks indicate that bank size, bank capital and net interest margin tend to reduce the level of bank risk taking, which supports the findings from the main sample. Finally, the results of this article have important implications for bank management, regulatory mechanisms and policy makers in terms of controlling the risk-taking behavior of banks, ensuring stability in the banking sector and building a sustainable banking sector.https://dergipark.org.tr/tr/download/article-file/4633510bank risk takingcommercial banksturkish banking systempanel data analysisbanka risk almaticari bankalartürk bankacılık sistemipanel veri analizi |
| spellingShingle | Yüksel Aydın Erdal Demir The Factors Influencing Banks' Risk-Taking Behavior: Evidence from The Turkish Banking Industry Ekonomi, Politika & Finans Araştırmaları Dergisi bank risk taking commercial banks turkish banking system panel data analysis banka risk alma ticari bankalar türk bankacılık sistemi panel veri analizi |
| title | The Factors Influencing Banks' Risk-Taking Behavior: Evidence from The Turkish Banking Industry |
| title_full | The Factors Influencing Banks' Risk-Taking Behavior: Evidence from The Turkish Banking Industry |
| title_fullStr | The Factors Influencing Banks' Risk-Taking Behavior: Evidence from The Turkish Banking Industry |
| title_full_unstemmed | The Factors Influencing Banks' Risk-Taking Behavior: Evidence from The Turkish Banking Industry |
| title_short | The Factors Influencing Banks' Risk-Taking Behavior: Evidence from The Turkish Banking Industry |
| title_sort | factors influencing banks risk taking behavior evidence from the turkish banking industry |
| topic | bank risk taking commercial banks turkish banking system panel data analysis banka risk alma ticari bankalar türk bankacılık sistemi panel veri analizi |
| url | https://dergipark.org.tr/tr/download/article-file/4633510 |
| work_keys_str_mv | AT yukselaydın thefactorsinfluencingbanksrisktakingbehaviorevidencefromtheturkishbankingindustry AT erdaldemir thefactorsinfluencingbanksrisktakingbehaviorevidencefromtheturkishbankingindustry AT yukselaydın factorsinfluencingbanksrisktakingbehaviorevidencefromtheturkishbankingindustry AT erdaldemir factorsinfluencingbanksrisktakingbehaviorevidencefromtheturkishbankingindustry |