Effects of Off-Balance Sheet Items on the Financial Performance of Turkish Deposit Banks

Authors : Burak BÜYÜKOĞLU, Ahmet ŞİT, Berna DOĞAN BAŞAR

Pages : 197-205

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Publication Date : 2023-07-15

Article Type : Research Paper

Abstract :In the study, the effects of off-balance sheet items on the performance of deposit banks operating in the Turkish banking sector were examined. In the study, a data set of 17 deposit banks operat- ing uninterruptedly in Turkey between 2010 and 2021 was created. In the study, the return on assets ratio and return on equity ratio, which are performance indicators, were used as dependent variables, while the independent variables were guarantee and surety, commitments, derivative financial instruments, and escrow and pledged assets obtained from the balance sheets of sample banks. The models created with the data set of the study were estimated by the system dynamic panel data analysis method. According to the findings obtained as a result of the estimation, while derivative financial instruments have a negative effect on the performance of deposit banks, the results of the performance-enhancing effect of trust and pledged assets have been obtained.
Keywords : Banka performansı, bilanço dışı kalemler, gölge bankacılık