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Articles

If bank capital matters, then how? The effect of bank capital on profitability of Turkish banks during the recent financial crisis

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Pages 160-166 | Received 01 Feb 2014, Accepted 26 Jun 2014, Published online: 30 Jul 2014
 

Abstract

The goal of this study is to examine if higher bank capital resulted in higher profitability of Turkish banks before and during the recent (2008–2009) financial crisis. Using the ordinary least squares, fixed effects and generalized method of moment estimator techniques, we find that higher bank capital had positive effects on bank profitability at all times, and the effect was more pronounced during the financial crisis.

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Notes on contributors

Alisher Akhmedjonov

Dr Alisher Akhmedjonov joined the Economics Department at Zirve University in Turkey in Fall 2010 as an assistant professor of Economics. He received his MA degree in Economics from the University of San Francisco and PhD in Policy Analysis from the RAND Graduate School in 2010. His research interests are in the areas of applied economics and emerging markets. He has been published widely, including in Applied Economics, Economic Modelling, and Economics Letters.

Berna Balci Izgi

Dr Berna Izgi is an assistant professor of Economics at Gaziantep University in Turkey. She has over several years of academic and professional experience in the field of emerging market economies. Her academic and professional experience involves designing and teaching undergraduate and graduate courses, consulting assignments and conducting research. Her research papers have been published in refereed scholarly journals including Applied Economics and Applied Economics Letters. Dr Izgi has shown outstanding contribution to the university in many areas including programme reviews, supervising dissertations, and academic advising. Her practices in areas related to assessment and academic advising has been used and referred to as best practices that can be adopted across the university.

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