The Effects of IMF Financial Soundness Indicators of Turkish Commercial Banks on the Financial Development Index

The financial soundness of banks, which are the building blocks of the financial system, is an important indicator that reflects the effectiveness of the financial system. It can be stated that the financial development of countries with an effective financial system will be positively affected by t...

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Main Author: Kübra Saka Ilgın
Format: Article
Language:English
Published: International Public Finance Conference/Turkey 2024-06-01
Series:International Journal of Public Finance
Subjects:
Online Access:https://dergipark.org.tr/tr/download/article-file/3694446
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author Kübra Saka Ilgın
author_facet Kübra Saka Ilgın
author_sort Kübra Saka Ilgın
collection DOAJ
description The financial soundness of banks, which are the building blocks of the financial system, is an important indicator that reflects the effectiveness of the financial system. It can be stated that the financial development of countries with an effective financial system will be positively affected by this situation. The paper aims to evaluate the effects of IMF financial soundness indicators of the Turkish commercial banks which have an important share in the Turkish banks, on the financial development index of Türkiye. In this paper, an evaluation was made based on the IMF Financial development index and IMF financial soundness indicators. Panel data analysis was used and panel least squares model estimation was made within the analysis. In line with the findings, it has been determined that sensitivity to profitability, liquidity, and market risks of commercial banks negatively affect financial development while the capital adequacy and asset quality of commercial banks positively affect financial development.
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institution Kabale University
issn 2548-0499
language English
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publisher International Public Finance Conference/Turkey
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series International Journal of Public Finance
spelling doaj-art-ca7b1237a8114c3fa4483ac40614359c2025-02-03T18:39:23ZengInternational Public Finance Conference/TurkeyInternational Journal of Public Finance2548-04992024-06-019110512410.30927/ijpf.1428422The Effects of IMF Financial Soundness Indicators of Turkish Commercial Banks on the Financial Development IndexKübra Saka Ilgın0https://orcid.org/0000-0002-7323-4401Erzincan Binali Yıldırım UniversityThe financial soundness of banks, which are the building blocks of the financial system, is an important indicator that reflects the effectiveness of the financial system. It can be stated that the financial development of countries with an effective financial system will be positively affected by this situation. The paper aims to evaluate the effects of IMF financial soundness indicators of the Turkish commercial banks which have an important share in the Turkish banks, on the financial development index of Türkiye. In this paper, an evaluation was made based on the IMF Financial development index and IMF financial soundness indicators. Panel data analysis was used and panel least squares model estimation was made within the analysis. In line with the findings, it has been determined that sensitivity to profitability, liquidity, and market risks of commercial banks negatively affect financial development while the capital adequacy and asset quality of commercial banks positively affect financial development.https://dergipark.org.tr/tr/download/article-file/3694446financial soundnessfinancial development indexpanel least squares
spellingShingle Kübra Saka Ilgın
The Effects of IMF Financial Soundness Indicators of Turkish Commercial Banks on the Financial Development Index
International Journal of Public Finance
financial soundness
financial development index
panel least squares
title The Effects of IMF Financial Soundness Indicators of Turkish Commercial Banks on the Financial Development Index
title_full The Effects of IMF Financial Soundness Indicators of Turkish Commercial Banks on the Financial Development Index
title_fullStr The Effects of IMF Financial Soundness Indicators of Turkish Commercial Banks on the Financial Development Index
title_full_unstemmed The Effects of IMF Financial Soundness Indicators of Turkish Commercial Banks on the Financial Development Index
title_short The Effects of IMF Financial Soundness Indicators of Turkish Commercial Banks on the Financial Development Index
title_sort effects of imf financial soundness indicators of turkish commercial banks on the financial development index
topic financial soundness
financial development index
panel least squares
url https://dergipark.org.tr/tr/download/article-file/3694446
work_keys_str_mv AT kubrasakailgın theeffectsofimffinancialsoundnessindicatorsofturkishcommercialbanksonthefinancialdevelopmentindex
AT kubrasakailgın effectsofimffinancialsoundnessindicatorsofturkishcommercialbanksonthefinancialdevelopmentindex