The Impact of Geopolitical Risk Index on the Profitability Performance of the Banking Sector

Furkan Yıldırım; Ayberk Nuri Berkman

TR EN

Jeopolitik Risk Endeksinin Bankacılık Sektörünün Karlılık Performansına Etkisi

Öz

Bu çalışma, G-7 ülkelerinin 2012: Q2- 2021: Q4 dönemine ait çeyreklik veriler ile ülkelerin jeopolitik risklerinin bankacılık sektörü karlılık performansına olan etkisini araştırmayı amaçlamaktadır. Bu amaç doğrultusunda bankalara özgü değişkenler ve makro ekonomik değişkenler olmak üzere iki panel model oluşturulmuştur. Panel modeller Driscoll-Kraay sabit etkiler tahmincisi ile analiz edilmiştir. Analiz sonuçlarına göre, jeopolitik risk endeksindeki artış bankaların karlılık performansını negatif yönde etkilemektedir. Ayrıca enflasyon oranındaki artışların da bankacılık sektörünün karlılığı üzerinde negatif etkisi olduğu sonucuna ulaşılmıştır. Ancak bankaların sermaye yeterlilik oranı, sektördeki kredi büyüme oranı ve faiz oranındaki artışlar bankaların karlılık performansı üzerinde pozitif etki yarattığı sonucuna ulaşılmıştır. Elde edilen tahmin sonuçları, ülkelerde artan risk algısıyla mücadele edebilmek için risk yönetiminin ve piyasayı istikrarlı hale getirmeye yardımcı olabilecek güçlü bir ekonomik sistemin oluşturulmasının oldukça önemli olduğunu göstermektedir.

Anahtar Kelimeler

The Impact of Geopolitical Risk Index on the Profitability Performance of the Banking Sector

Abstract

This study aimed to investigate the impacts of the geopolitical risks of the countries on the profitability performance of the banking sector using the quarterly data of the G-7 countries over the period 2012:Q2- 2021:Q4. For this purpose, two panel models were established, namely, bank-specific variables and macroeconomic variables. Panel models were analyzed with the Driscoll-Kraay fixed effects estimator. According to the analysis results, the increase in the geopolitical risk index negatively affects the profitability performance of banks. Besides, it was concluded that the increase in the inflation rate had a negative impact on the profitability of the banking sector. Nonetheless, it was concluded that the capital adequacy ratio of the banks, the credit growth rate in the sector, and the increases in the interest rate had positive impacts on the profitability performance of the banks. The obtained estimation results indicated that risk management and the establishment of a strong economic system that could help oturtulmuş the market are quite important in order to combat the increasing risk perception in countries.

Keywords

References

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Details

Primary Language

English

Subjects

-

Journal Section

Research Article

Authors

Furkan Yıldırım ^*
0000-0002-0646-8638
Türkiye

Ayberk Nuri Berkman
0000-0003-1650-381X
Türkiye

Publication Date

October 21, 2022

Submission Date

August 22, 2022

Acceptance Date

October 17, 2022

Published in Issue

Year 2022 Volume: 7 Number: 2

IZ

https://izlik.org/JA23DP64WN

Cite

RIS / Bibtex

APA

Yıldırım, F., & Berkman, A. N. (2022). The Impact of Geopolitical Risk Index on the Profitability Performance of the Banking Sector. Türk Sosyal Bilimler Araştırmaları Dergisi, 7(2), 89-100. https://izlik.org/JA23DP64WN