The Determinants of Capital Buffer in the Turkish Banking System

Atici, Gonca; Gürsoy, Güner

doi:10.5539/ibr.v6n1p224

Cited by 24 publications

(23 citation statements)

References 24 publications

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“…Thus, based on the results of this study indicate that the ROE does not significantly influence the volume of bond issuance. However, the results of this study contrast with research that has been done by Atici and Gursoy (2012), Chapaign (2009), and Binh and Thomas (2014 which states that the ROE significant effect on the amount of bond issuance. Based on these studies states that issuers with a good growth rate, and a high level of financial leverage tend to issue bonds in large quantities.…”

Section: Return On Equity To Bond Volume Issuancecontrasting

confidence: 56%

“…However, these results contrast with research that has been done by Horvarth et al (2012), and Atici and Gursoy (2012), which states that the variable NPL has a negative significance to the volume of bond issuance. Based on the study, a higher level of non-performing loans could create a decrease in the level of liquidity creation.…”

Section: Non Performing Loan To Bond Volume Issuancecontrasting

confidence: 56%

“…A result of this study is different from research that has been conducted by Atici and Gursoy (2012) where the loan-to-deposit has a positive relationship with the issuance of bonds.…”

Section: Loan To Deposit To Bond Volume Issuancecontrasting

confidence: 52%

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Determinant Factor of Indonesia Banking Industry to Issued Bond in 2006-2014

Baskoro¹,

Nuryartono²,

Maulana³

2015

IJEF

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Due to global economic crisis which occured in 2008, has caused the volatility of the market and increasing the market risk. Moreover, the banking industry issued Basel III Act as a respond in order to strengthen the stability of the financial sector and prevent the negative effect on the economy from the crisis that may occur in the future. Based on Basel III Act, the banking industry is expected to meet the requirement through internal and external business activity. Furthermore, the aim of this study is to analyze which factor that determined the volume of bond issued based on internal and external factors of the company. The result shows that CAR, NIM, and BI Rate have significant effect on the volume of bond issued.

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Section: Return On Equity To Bond Volume Issuancecontrasting

confidence: 56%

Section: Non Performing Loan To Bond Volume Issuancecontrasting

confidence: 56%

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Determinant Factor of Indonesia Banking Industry to Issued Bond in 2006-2014

Baskoro¹,

Nuryartono²,

Maulana³

2015

IJEF

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“…The first indication is that the Turkish banking system is well-capitalized in terms of the Basel II capital adequacy framework. 8 However, the publicly owned banks holding nearly 32 percent of the banking sector have an unreasonably high capital adequacy, raising the question of misuse of public resources. The average capital ratios of foreign banks are the lowest, despite their comparative advantage in terms of cost of capital.…”

Section: The Resultsmentioning

confidence: 99%

Are Capital Ratios Procyclical? Evidence from Turkish Banking Data

Topbaş

2018

Journal of Central Banking Theory and Practice

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This paper contributes to the literature by providing recent empirical evidence about the positioning of the capital adequacy ratios (Basel II capital adequacy ratio and leverage ratio as proposed by Basel III) of Turkish banks and the business cycle. As in many emerging countries, the Turkish real sector is highly dependent on the banking loans for financing, and consequently, the macroeconomic system is vulnerable to the supply of bank loans. The results reveal that the Basel II capital adequacy ratio of Turkish banks is procyclical at a statistical significance in normal and crisis times. The results of cyclicality tests of the leverage ratio are mixed: if nominal GDP growth is taken as a business cycle indicator, it is procyclical; however, the credit-to-GDP gap signals countercyclical leverage ratios in normal times. In crisis times, the leverage ratio of the Turkish banking system is determined to be countercyclical.

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“…Capital banking is faced with many aspects of micro-prudential issues, including financing risk, market risk, operational risk, and third-party funds. These micro-prudential aspects can be measured by financial ratios such as Non-Performing Financing (NPF) to measure financing or credit risk (Jokipii and Milne, 2007;Atici and Gursoy, 2013;Bayuseno and Chabahib, 2014;Daher, 2015;Noreen et al, 2016;Ghosh, 2017;Sutrisno, 2018), Return on Assets (ROA) and Operating Expenses operating income (BOPO) to measure operational risk (Agustuty D and Ruslan, 2019;Sutrisno, 2018), Size and Net Interest (NI) to measure market risk (Prasetyoko and Seodarmono, 2015;Sutrisno, 2018), and third-party funds or deposits (Xu et al, 2012;Zu and Chen, 2016).…”

Section: Introductionmentioning

confidence: 99%

Capital Buffer, Risk, Profitability, Size, and Macroeconomics: Empirical Study on Islamic Banks

Septiarini

Hisan

Matsahri

et al. 2021

Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah

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Abstract. The development of Islamic economics has led to the growth of Islamic banking, as a financial institution based on sharia principles. This research aims to analyze the relationship of risk, profitability, company size, and macroeconomics with capital buffer of Shariah Commercial Banks Indonesia during the period of 2015-2019. The study used a quantitative approach of the regression panel data with stata13 statistical tools. This study used secondary data with a population of 14 sharia commercial banks and a sample of 12 Islamic commercial banks using purposive sampling method. BOPO, NM, ROA, and KURS (exchange rate) were found to have significant positive effects on CB. SIZE has a significant negative effect, while NPF has positive insignificant effect on CB. Islamic banks, regulators, and governments may consider risks, profitability, company size, and macroeconomic conditions in determining the size of capital buffers and maintaining the adequacy of capital owned by Islamic Banking.Keyword: Capital Buffer, Islamic Economic Systems, Shariah Banks. Abstrak. Ekonomi Islam menjadi paradigma baru yang komprehensif. Bank syariah dalam sistem ekonomi Islam merupakan lembaga keuangan dengan prinsip syariah. Penelitian ini bertujuan untuk menganalisis hubungan risiko, profitabilitas, ukuran perusahaan, dan makroekonomi dengan penyangga modal (CB) Bank umum syariah (BUS) di Indonesia pada tahun 2015-2019. Pendekatan penelitian menggunakan pendekatan data panel kuantitatif regresi dengan alat statistik stata13. Penelitian ini menggunakan data sekunder dengan populasi 14 Bank Islam dan sampel 12 bank umum syariah berdasarkan metode purposive sampling. BOPO, NM, ROA, dan KURS (nilai tukar) ditemukan memiliki pengaruh positif yang signifikan terhadap CB. SIZE memiliki hubungan negatif signifikan, sedangkan NPF positif tidak signifikan. Bank syariah, regulator, dan pemerintah dapat mempertimbangkan risiko, profitabilitas, ukuran perusahaan, dan kondisi makroekonomi dalam menentukan ukuran penyangga modal dan menjaga kecukupan modal yang dimiliki oleh Perbankan Syariah.Kata Kunci: Penyangga Modal, Sistem Ekonomi Syariah, Bank Syariah

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The Determinants of Capital Buffer in the Turkish Banking System

Cited by 24 publications

References 24 publications

Determinant Factor of Indonesia Banking Industry to Issued Bond in 2006-2014

Determinant Factor of Indonesia Banking Industry to Issued Bond in 2006-2014

Are Capital Ratios Procyclical? Evidence from Turkish Banking Data

Capital Buffer, Risk, Profitability, Size, and Macroeconomics: Empirical Study on Islamic Banks

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