Türk bankacılık sektörünün temel gelirleri olan net faiz gelirlerinin toplam gelirler içindeki  payı  kriz  yılları  olan  1994  ve  2001  yılları  hariç  tutulduğunda  ortalama  yüzde  80  civarındayken, 2002 yılından sonra yüzde 60’lar seviyesine gerilemiş (Atasoy, 2007: 19) ve

A STUDY OF THE RELATIONSHIP BETWEEN BANKING SECTOR’S PROFITABILITY AND INTEREST RATES ON DEPOSITS USING JOHANSEN COINTEGRATION AND GRANGER CAUSALITY TEST

The profitability of banking sector has a critical importance  in terms of  this  sector. There are various determiners of the profitability in banking sector. In this research the relationship between interest rates on deposits that is one of determiners of profitability and profitability in the banking sector is being studied and the effects of change in interest rates in deposits on the profitability in banking sector researched. The relationship between Return on Assets (ROA) and Return on Equity (ROE) which are the basic profitability indicators in banking sector is being tried to be detected using quarterly data for the period 2003Q1-2013Q4. Additionally the effects of 2008 global finance crisis is being tried to be reflected with the help of dummy variable. 3 public, 11 private equity and 18 foreign capitalized banks were included in the scope of the research. As a result of this research in which Johansen Cointegration and Granger Causality Tests were used has been found a long term relationship between variables and one way causality from the profitability indicators to interest rates.