ANALYSIS OF BANKS' FINANCIAL PERFORMANCE IN PARALLEL OF SELECTED MACRO INDICATORS: THE CASE OF TURKEY

Abstract

In the study, the interaction of the evaluation results in the CAMELS rating system between the 6th month of 2020 and the 6th month of 2020 of the banking sector in Turkey with macro indicators such as unemployment, manufacturing industry capacity utilization rate and profitability of the non-bank sector has been examined. The interaction between the results of the CAMELS analysis, in which the consolidated data of the entire banking sector is used, and the relevant macroindicators were examined with the VAR analysis method and it was observed that there was a limited interaction between the parameters. The fact that the CAMELS evaluation system includes parameters other than the “increase/decrease in funds” that may directly affect the non-bank sector, the banking sector's accounting, auditing, etc. structure differs from the non-banking sectors, having been the complex time and content relations between the parameters even if the lag time is added in the analysis, discussions about the accuracy of the data in both sectors,  was evaluated as the reasons for the limited and weak relationship.