Paper ID: UTISGAD-2024-4-2-1911
Title: ANALYZING BANKS’ FINANCIAL MANAGEMENT QUALITY IN TRNC: MABAC ANALYSIS
Authors: Erdem ONCU, Ali ERDOGAN, Ahmet ATAKİŞİ, Onur USTAOGLU
ABSTRACT
The banking sector is in an important position due to the contribution of its functions to the economy. The banking sector provides the resources required for companies to carry out their operations to a significant extent. As with other companies, banks are also examined in terms of management quality. International standards for the caliber of management apply to banks. Following the Basel Agreement, the most significant international regulations in this area were established. The Third Basel Agreement establishes international standards for capital adequacy, stress testing, and bank liquidity. To address the shortcomings in financial regulation exposed by the 2008 financial crisis, the second Basel Agreement was developed into the third Basel Agreement. The banking law in the TRNC was amended in 2001 and the content of the capital structure was brought into line with the Basel Agreement. The minimum capital adequacy of banks is one of the most important aspects of the Basel Agreements. In this study, banks operating in the TRNC were examined using 5 different financial ratios used in the measurement of minimum capital adequacy as well as stress testing and liquidity. The comparisons were conducted using MABAC analysis. According to the findings of the study, which used the years 2018-2020 as the data period, foreign banks operating in the TRNC perform better than local banks. When individual performances are examined, it is observed that Ziraat Bank and Türkiye Garanti Bank are the banks that have given the best performance for 3 years.
Keywords: Banking, Financial Performance, TRNC.
JEL Codes: G21, G32.
