Thesis (M.S.) - Cyprus International University. Institute for Graduate Studies and Research Accounting and Finance Department

The main emphasis of the study is to determine the determinants of the performance of the financial sector in an emerging market economy (EME) by drawing ideas from Turkey's banking sector Changes in the performance of Turkey's financial sector were analyzed in relation to changes in economic growth, asset quality, total assets, total deposits, inflation and effects of the International Financial Reporting Standards. A fixed effects regression model was estimated using annual panel data from the 2001 to 2018. The data was collected from 8 public banks and the results of the study depicted that there was a positive relationship between bank deposits and performance. The findings also revealed that an increase in inflation and economic growth had inelastic positive effects of bank performance. Improvements in the public banks' asset quality were responsible for causing an increase in bank performance for the period from 2008 to 2018. Inferences were made that the adoption and implementation of IFRS led to an improvement in corporate governance and good ethical conducts within the financial institutions.