Analysis of The Effect of The Change In Bank Branch Number on Bank Profitability – The Case Of Turkey

DOI: 10.5176/2251-1997_AF18.210

Authors: Assoc. Proff. Senol BABUSCU, Assoc. Proff. Adalet HAZAR, Dr. M. Oguz KOKSAL, Dr. M. Agah TEKINDAL

Abstract:

Banks mainly transfer funds to those who need funds from those with more funds through branches. In the markets where profit margins are narrow, cost management for banks is a priority. The banking sector, which is one of the technology-intensive sectors, is implementing applications that will make the number of branches optimal in the framework of good cost management. Especially in recent years, it has been seen that some banks in the Turkish banking sector have reduced their branches and the effect of this has been reflected in the number of branches of the sector. In this study, the change and relationship in the profitability of 4 banks that increase the number of branches the most and the 4 banks that decrease the number of branches the most, are analyzed in the 3-month periods between the end of 2012 and the end of 2017.

Keywords: banking sector, number of branches, profitability, branch increase, branch decrease.