Credit risk negatively impacts Turkish banks' profitability, urging focus on management.
The article examines how credit risk affects the financial performance of banks in Turkey from 2005 to 2017. They looked at data from 26 banks and found that higher credit risk is linked to lower profitability for banks. This suggests that managing credit risk, especially non-performing loans, is crucial for the success of Turkish deposit banks. The study recommends that banks focus on improving their credit risk management techniques to enhance their profitability.