Internal Determinants of Profitability in Turkish Banking Sector

The aim of this study is to identify the internal determinants of profitability of Turkish banks in the period of 2002-2009. The importance of the study derives from the fact that finding out the mentioned determinants is a necessity for both the managers of Turkish banks who successfully operates -even in times of financial crisis-, and existing (and potential) national and international investors. Findings of the study indicate that capital efficiency and size affect profitability positively, while liquidity and operating costs negatively.