Author :
Abstract
The aim of this research is to examine the effects of digitalization between participation banks and deposit banks in Türkiye from 2010 to 2024. Within the 2010-2024 period, analyses were conducted using quarterly data from a total of 37 deposit banks and 9 participation banks operating in Türkiye, categorized as foreign capital, public capital, and private capital. The Toda-Yamamoto causality method was used in the study. It is observed that the impact of digitalization on banking profitability varies according to the type of bank. In deposit banks, it is understood that digitalization is a strong tool in terms of efficiency and income generation; whereas, in participation banks, the impact of digitalization is more shaped by external macroeconomic conditions. Despite the fact that digitalization has increased operational efficiency post-pandemic, macroeconomic uncertainties have differentiated its effects. In conclusion, it is recommended that banks shape their digital strategies in line with profitability, efficiency, and flexibility goals, while regulatory institutions provide a legal framework compatible with digitalization.
Keywords
Abstract
The aim of this research is to examine the effects of digitalization between participation banks and deposit banks in Türkiye from 2010 to 2024. Within the 2010-2024 period, analyses were conducted using quarterly data from a total of 37 deposit banks and 9 participation banks operating in Türkiye, categorized as foreign capital, public capital, and private capital. The Toda-Yamamoto causality method was used in the study. It is observed that the impact of digitalization on banking profitability varies according to the type of bank. In deposit banks, it is understood that digitalization is a strong tool in terms of efficiency and income generation; whereas, in participation banks, the impact of digitalization is more shaped by external macroeconomic conditions. Despite the fact that digitalization has increased operational efficiency post-pandemic, macroeconomic uncertainties have differentiated its effects. In conclusion, it is recommended that banks shape their digital strategies in line with profitability, efficiency, and flexibility goals, while regulatory institutions provide a legal framework compatible with digitalization.
