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Analysis of Financial Soundness of Participation Banks by Bankometer and Z-Score Methods

Year 2022, Volume: 12 Issue: 2, 301 - 321, 31.12.2022
https://doi.org/10.31679/adamakademi.1065747

Abstract

In this research, the financial soundness and solvency of the participation banking sector are examined in the context of Turkey. For this purpose, the situation of five participation banks operating in Turkey (Albaraka Türk, Kuveyt Türk, Türkiye Finans, Vakıf Katılım Bankası, Ziraat Katılım Bankası) has been analyzed based on the 2016-2020 financial data. In the research, Bankometer model developed by Shar et al. (2010) was used to measure the solvency of banks; The Z-Score model developed by Altman (1968) was also used to predict the bankruptcy potential of banks. According to the results of the Z-Score model used in the research, both private and public capital participation banks are at risk of bankruptcy; according to the results of the Bankometer model, it was concluded that participation banks were mostly in the gray zone in the analyzed periods and had the potential to experience financial distress.

References

  • Africa, L. A. (2018). Bankometer Models for Predicting Financial Distress in Banking Industry. Jurnal Keuangan dan Perbankan, 22(2), 373-379.
  • Aksoy, E. E. A. ve Göker, İ. E. K. (2018) Bankacılık Sektöründe Finansal Risklerin Z-Skor ve Bankometer Metodları ile Tespiti, BİST’te İşlem Gören Ticari Bankalar Üzerine Bir Araştırma. Muhasebe Bilim Dünyası Dergisi, 20(2), 418-438.
  • Al Zaabi, O.S.H. (2011). Potential For the Application of Emerging Market Z-Score in UAE Islamic Banks. International Journal of Islamic and Middle Eastern Finance and Management, 4(2), 158-173.
  • Alexakis, C., Izzeldin, M., Johnes, J., & Pappas, V. (2019). Performance and Productivity in Islamic and Conventional Banks: Evidence from the Global Financial Crisis. Economic Modelling, 79, 1-14.
  • Ali, A., Zulkhibri, M., & Kishwar, T. (2018). Assessing Islamic Banking System Vulnerabilities in Pakistan: Evidence from ‘Bankometer’ Model, IRTI Working Paper 2018-04. Islamic Economics and Finance Research Division, https://ssrn.com/abstract=3263317 [30.01.2022].
  • Altman, E. (1968). Financial Ratios, Discriminant Analysis and The Prediction of Corporate Bankruptcy. The Journal of Finance, 23(4), 589-609.
  • Altman, E. I., Iwanicz‐Drozdowska, M., Laitinen, E. K., & Suvas, A. (2017). Financial Distress Prediction in An İnternational Context: A Review and Empirical Analysis of Altman's Z‐Score Model. Journal of International Financial Management & Accounting, 28(2), 131-171.
  • Anadolu Ajansı- AA. (2019). İslami Finans Dünyada 10 Ülkede Yoğunlaştı, https://www.aa.com.tr/tr/ekonomi/islami-finans-dunyada-10-ulkede-yogunlasti/1582880 [30.01.2022].
  • Ashraf, A., & Tariq, Y. B. (2016). Evaluating the Financial Soundness of Banks: An Application of Bankometer on Pakistani Listed Banks. IUP Journal of Financial Risk Management, 13(3), 47-63.
  • Ashraf, D., Rizwan, M.S., L’Huiller, B. (2016). A Net Stable Funding Ratio for Islamic Banks and İts İmpact on Financial Stability: An İnternational İnvestigation. Journal of Financial Stability, 25, 47-57.
  • Beck, T., Demirgüç-Kunt, A., Merrouche, O. (2013). Islamic vs. Conventional Canking: Business Model, Efficiency and Stability. Journal of Banking and Finance, 37, 433-447.
  • Bilgin, M.H., Danisman, G.O., Demir, E., Tarazi, A. (2021). Economic Uncertainity and Bank Stability: Conventional vs. Islamic banking, Journal of Financial Stability, 56, 1-20.
  • Bolat, A. (2017). Evaluating The Current Financial State of Banking Sector in Kazakhstan Using Altman’s Model, Bankometer Model. Revista Espacios, 38(48).
  • Budiman, T., Herwany, A., & Kristanti, F. T. (2017). An Evaluation of Financial Stress for Islamic Banks in Indonesia Using A Bankometer Model. Journal of Finance and Banking Review, 2(3), 14-20.
  • Chapra, M.U. (2011). The Global Financial Crisis: Some Suggestions For Reform Of The Global Financial Architecture in The Light of Islamic Finance, Thunderbird International Business Review, 53(5), 565-579.
  • Chowdhury, M.A.F., Shoyeb, M., Akbar, C., Islam, M.N. (2016). Risk Sharing Paradigm Of Islamic Banks: Case of Bangladesh, In Advances in Islamic Finance, Marketing and Management, Emerald Group Publishing Limited, 103-130.
  • Čihák, M., Hesse, H. (2010). Islamic Banks and Financial Stability: An Empirical Analysis. Journal of Financial Services Research, 38 (2), 95-113.
  • Farook, S., Hassan, M.K., Clinch, G. (2014). Islamic Bank Incentives and Discretionary Loan Loss Provisions. Pacific-Basin Finance Journal, 28, 152-174.
  • Hasan, M., Dridi, J. (2010). The Effects of The Global Crisis on Islamic and Conventional Banks: A Comparative Study. IMF Working Paper No. 10/201, Available at SSRN: https://ssrn.com/abstract=1750689 or http://dx.doi.org/10.2139/ssrn.1750689 [29.01.2022].
  • Hussien, M.E., Alam, Md. M., Murad, Md. W. ve Wahid, A.N.M. (2019). The Performance of Islamic Banks During The 2008 Global Financial Crisis, Journal of Islamic Accounting and Business Research, 10(3): 407-420.
  • Islamic Financial Services Board (IFSB). (2020). Islamic Financial Services Industry Stability Report. Kuala Lumpur, Malaysia, July.
  • Kattel, I. K. (2014). Evaluating The Financial Solvency of Selected Commercial Banks of Nepal: An Application of Bankometer. Journal of Advanced Academic Research, 1(1), 88-95.
  • Lassoued, M. (2018). Corporate Governance and Financial Stability in Islamic Banking. Managerial Finance, 44(5), 524-539.
  • Mateev, M., Bachvarov, P. (2021). Regulation, Ownership and Bank Performance in MENA Region: Evidence for Islamic and Conventional Banks. Emerging Markets Review, 47, 100789.
  • Mousa, T. A. (2017). Performance Evaluation of the Jordanian Commercial Banks Based on Bankometer Parameters. International Journal of Economics and Finance, 9(12), 249-252.
  • Olson, D., Zoubi, T. (2017). Convergence in Bank Performance for Commercial and Islamic Banks During and After The Global Financial Crisis. The Quarterly Review of Economics and Finance, 65, 71-87.
  • Permata, M., and Purwanto, E. (2018). Analysis of CAMEL, Z-Score, and Bankometer in Assessment Soundness of Banking Listed on the Indonesia Stock Exchange (IDX) from 2012-2015. Journal of Applied Economic Sciences, 5(59), 1311-1324.
  • Qamruzzaman, M. (2014). Predicting Bankruptcy: Evidence from Private Commercial Banks in Bangladesh. International Journal of Financial Economics, 2(3), 114-121.
  • Rosman, R., Wahab, N.A., Zainol, Z. (2014). Efficiency of Islamic Banks During The Financial Crisis: An analysis of Middle Eastern and Asian countries. Pacific-Basin Finance Journal, 28, 76-90.
  • Safiullah, Muhammed. (2021). Financial Stability Efficiency of Islamic and Conventional Banks. Pacific-Basin Finance Journal, 68, 101587.
  • Sakarya, Ş. ve Karakaş, F. (2021). Türkiye’de Bankacılık Sektörünün Finansal Performansının CAMELS ve Bankometer Yöntemleriyle İncelenmesi, Uluslararası işletme, Ekonomi ve Yönetim Perspektifleri Dergisi, Prof. Dr. Fikret OTLU Özel Sayısı, 6 (5), 485-504.
  • Samarakoon, L. P., Hasan, T. (2003). Altman’s Z-Score Models of Predicting Corporate Distress: Evidence from The Emerging Sri Lankan Stock Market. Journal of The Academy of Finance, (1), 119-125.
  • Shar, A. H., Shah, M. A., & Jamali, H. (2010). Performance Evaluation of Banking Sector in Pakistan: An Application of Bankometer, International Journal of Business and Management, 5(9), 81.
  • Srairi, S. (2013). Ownership Structure and Risk-Taking Behaviour in Conventional and Islamic Banks: Evidence for MENA Countries. Borsa İstanbul Review, 13, 115-127.
  • Suresh, N., Ligori, A., Khan, S., & Khan, S. A. (2019). Comparative Financial Performance and Financial Soundness of Banks in Bhutan: Application of Dupont and Bankometer Models. International Journal of Psychosocial Rehabilitation, 23(1), 441-448.
  • Uçar, M., & Eren, Ö. (2021). Covid-19 Sürecinde Türk Bankacılık Sektörünün Finansal Sağlamlığının Analizi: Bankometer Yöntemi, Uluslararası Kapadokya Salgın Dönemleri Kongresi. 31 Mayıs-3 Haziran 2021.
  • Yameen, I.Y., Ali, M.S. (2016). Evaluating The Financial Soundness of The Jordanian Commercial Banks By Applying Bankometer’s Model. Research Journal of Finance and Accounting, 7(2), 124-130.

Katılım Bankalarının Finansal Sağlamlığının Bankometer ve Z-Skor Yöntemleriyle Analizi

Year 2022, Volume: 12 Issue: 2, 301 - 321, 31.12.2022
https://doi.org/10.31679/adamakademi.1065747

Abstract

Bu araştırmada katılım bankacılığı sektörünün finansal açıdan sağlamlığı ve borç ödeme gücü Türkiye bağlamında incelenmiştir. Bu amaç doğrultusunda Türkiye’de faaliyet gösteren beş katılım bankasının (Albaraka Türk, Kuveyt Türk, Türkiye Finans, Vakıf Katılım Bankası, Ziraat Katılım Bankası) durumu 2016-2020 dönemi finansal verilerinden hareketle analiz edilmiştir. Araştırmada Shar vd. (2010) tarafından geliştirilen Bankometer modeli bankaların borç ödeme gücünü ölçmek için; Altman (1968) tarafından geliştirilen Z-Skor modeli de bankaların iflas potansiyelini tahmin etmek için kullanılmıştır. Araştırmada kullanılan Z-Skor modeli sonuçlarına göre hem özel sermayeli hem de kamu sermayeli katılım bankalarının iflas riskiyle karşı karşıya oldukları; Bankometer modeli sonuçlarına göre ise katılım bankalarının incelenen dönemlerde çoğunlukla gri bölgede yer aldıkları ve finansal zorluk yaşama potansiyeli taşıdığı sonuçlarına ulaşılmıştır.

References

  • Africa, L. A. (2018). Bankometer Models for Predicting Financial Distress in Banking Industry. Jurnal Keuangan dan Perbankan, 22(2), 373-379.
  • Aksoy, E. E. A. ve Göker, İ. E. K. (2018) Bankacılık Sektöründe Finansal Risklerin Z-Skor ve Bankometer Metodları ile Tespiti, BİST’te İşlem Gören Ticari Bankalar Üzerine Bir Araştırma. Muhasebe Bilim Dünyası Dergisi, 20(2), 418-438.
  • Al Zaabi, O.S.H. (2011). Potential For the Application of Emerging Market Z-Score in UAE Islamic Banks. International Journal of Islamic and Middle Eastern Finance and Management, 4(2), 158-173.
  • Alexakis, C., Izzeldin, M., Johnes, J., & Pappas, V. (2019). Performance and Productivity in Islamic and Conventional Banks: Evidence from the Global Financial Crisis. Economic Modelling, 79, 1-14.
  • Ali, A., Zulkhibri, M., & Kishwar, T. (2018). Assessing Islamic Banking System Vulnerabilities in Pakistan: Evidence from ‘Bankometer’ Model, IRTI Working Paper 2018-04. Islamic Economics and Finance Research Division, https://ssrn.com/abstract=3263317 [30.01.2022].
  • Altman, E. (1968). Financial Ratios, Discriminant Analysis and The Prediction of Corporate Bankruptcy. The Journal of Finance, 23(4), 589-609.
  • Altman, E. I., Iwanicz‐Drozdowska, M., Laitinen, E. K., & Suvas, A. (2017). Financial Distress Prediction in An İnternational Context: A Review and Empirical Analysis of Altman's Z‐Score Model. Journal of International Financial Management & Accounting, 28(2), 131-171.
  • Anadolu Ajansı- AA. (2019). İslami Finans Dünyada 10 Ülkede Yoğunlaştı, https://www.aa.com.tr/tr/ekonomi/islami-finans-dunyada-10-ulkede-yogunlasti/1582880 [30.01.2022].
  • Ashraf, A., & Tariq, Y. B. (2016). Evaluating the Financial Soundness of Banks: An Application of Bankometer on Pakistani Listed Banks. IUP Journal of Financial Risk Management, 13(3), 47-63.
  • Ashraf, D., Rizwan, M.S., L’Huiller, B. (2016). A Net Stable Funding Ratio for Islamic Banks and İts İmpact on Financial Stability: An İnternational İnvestigation. Journal of Financial Stability, 25, 47-57.
  • Beck, T., Demirgüç-Kunt, A., Merrouche, O. (2013). Islamic vs. Conventional Canking: Business Model, Efficiency and Stability. Journal of Banking and Finance, 37, 433-447.
  • Bilgin, M.H., Danisman, G.O., Demir, E., Tarazi, A. (2021). Economic Uncertainity and Bank Stability: Conventional vs. Islamic banking, Journal of Financial Stability, 56, 1-20.
  • Bolat, A. (2017). Evaluating The Current Financial State of Banking Sector in Kazakhstan Using Altman’s Model, Bankometer Model. Revista Espacios, 38(48).
  • Budiman, T., Herwany, A., & Kristanti, F. T. (2017). An Evaluation of Financial Stress for Islamic Banks in Indonesia Using A Bankometer Model. Journal of Finance and Banking Review, 2(3), 14-20.
  • Chapra, M.U. (2011). The Global Financial Crisis: Some Suggestions For Reform Of The Global Financial Architecture in The Light of Islamic Finance, Thunderbird International Business Review, 53(5), 565-579.
  • Chowdhury, M.A.F., Shoyeb, M., Akbar, C., Islam, M.N. (2016). Risk Sharing Paradigm Of Islamic Banks: Case of Bangladesh, In Advances in Islamic Finance, Marketing and Management, Emerald Group Publishing Limited, 103-130.
  • Čihák, M., Hesse, H. (2010). Islamic Banks and Financial Stability: An Empirical Analysis. Journal of Financial Services Research, 38 (2), 95-113.
  • Farook, S., Hassan, M.K., Clinch, G. (2014). Islamic Bank Incentives and Discretionary Loan Loss Provisions. Pacific-Basin Finance Journal, 28, 152-174.
  • Hasan, M., Dridi, J. (2010). The Effects of The Global Crisis on Islamic and Conventional Banks: A Comparative Study. IMF Working Paper No. 10/201, Available at SSRN: https://ssrn.com/abstract=1750689 or http://dx.doi.org/10.2139/ssrn.1750689 [29.01.2022].
  • Hussien, M.E., Alam, Md. M., Murad, Md. W. ve Wahid, A.N.M. (2019). The Performance of Islamic Banks During The 2008 Global Financial Crisis, Journal of Islamic Accounting and Business Research, 10(3): 407-420.
  • Islamic Financial Services Board (IFSB). (2020). Islamic Financial Services Industry Stability Report. Kuala Lumpur, Malaysia, July.
  • Kattel, I. K. (2014). Evaluating The Financial Solvency of Selected Commercial Banks of Nepal: An Application of Bankometer. Journal of Advanced Academic Research, 1(1), 88-95.
  • Lassoued, M. (2018). Corporate Governance and Financial Stability in Islamic Banking. Managerial Finance, 44(5), 524-539.
  • Mateev, M., Bachvarov, P. (2021). Regulation, Ownership and Bank Performance in MENA Region: Evidence for Islamic and Conventional Banks. Emerging Markets Review, 47, 100789.
  • Mousa, T. A. (2017). Performance Evaluation of the Jordanian Commercial Banks Based on Bankometer Parameters. International Journal of Economics and Finance, 9(12), 249-252.
  • Olson, D., Zoubi, T. (2017). Convergence in Bank Performance for Commercial and Islamic Banks During and After The Global Financial Crisis. The Quarterly Review of Economics and Finance, 65, 71-87.
  • Permata, M., and Purwanto, E. (2018). Analysis of CAMEL, Z-Score, and Bankometer in Assessment Soundness of Banking Listed on the Indonesia Stock Exchange (IDX) from 2012-2015. Journal of Applied Economic Sciences, 5(59), 1311-1324.
  • Qamruzzaman, M. (2014). Predicting Bankruptcy: Evidence from Private Commercial Banks in Bangladesh. International Journal of Financial Economics, 2(3), 114-121.
  • Rosman, R., Wahab, N.A., Zainol, Z. (2014). Efficiency of Islamic Banks During The Financial Crisis: An analysis of Middle Eastern and Asian countries. Pacific-Basin Finance Journal, 28, 76-90.
  • Safiullah, Muhammed. (2021). Financial Stability Efficiency of Islamic and Conventional Banks. Pacific-Basin Finance Journal, 68, 101587.
  • Sakarya, Ş. ve Karakaş, F. (2021). Türkiye’de Bankacılık Sektörünün Finansal Performansının CAMELS ve Bankometer Yöntemleriyle İncelenmesi, Uluslararası işletme, Ekonomi ve Yönetim Perspektifleri Dergisi, Prof. Dr. Fikret OTLU Özel Sayısı, 6 (5), 485-504.
  • Samarakoon, L. P., Hasan, T. (2003). Altman’s Z-Score Models of Predicting Corporate Distress: Evidence from The Emerging Sri Lankan Stock Market. Journal of The Academy of Finance, (1), 119-125.
  • Shar, A. H., Shah, M. A., & Jamali, H. (2010). Performance Evaluation of Banking Sector in Pakistan: An Application of Bankometer, International Journal of Business and Management, 5(9), 81.
  • Srairi, S. (2013). Ownership Structure and Risk-Taking Behaviour in Conventional and Islamic Banks: Evidence for MENA Countries. Borsa İstanbul Review, 13, 115-127.
  • Suresh, N., Ligori, A., Khan, S., & Khan, S. A. (2019). Comparative Financial Performance and Financial Soundness of Banks in Bhutan: Application of Dupont and Bankometer Models. International Journal of Psychosocial Rehabilitation, 23(1), 441-448.
  • Uçar, M., & Eren, Ö. (2021). Covid-19 Sürecinde Türk Bankacılık Sektörünün Finansal Sağlamlığının Analizi: Bankometer Yöntemi, Uluslararası Kapadokya Salgın Dönemleri Kongresi. 31 Mayıs-3 Haziran 2021.
  • Yameen, I.Y., Ali, M.S. (2016). Evaluating The Financial Soundness of The Jordanian Commercial Banks By Applying Bankometer’s Model. Research Journal of Finance and Accounting, 7(2), 124-130.
There are 37 citations in total.

Details

Primary Language Turkish
Journal Section Articles
Authors

Nevzat Çalış 0000-0002-5604-0728

Mustafa Kevser

Şakir Sakarya

Publication Date December 31, 2022
Submission Date January 31, 2022
Published in Issue Year 2022 Volume: 12 Issue: 2

Cite

APA Çalış, N., Kevser, M., & Sakarya, Ş. (2022). Katılım Bankalarının Finansal Sağlamlığının Bankometer ve Z-Skor Yöntemleriyle Analizi. Adam Academy Journal of Social Sciences, 12(2), 301-321. https://doi.org/10.31679/adamakademi.1065747

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