Akademik Veri Yönetim Sistemi
International Journal of Public Finance (Online), cilt.9, sa.1, ss.105-124, 2024 (Hakemli Dergi)
The financial soundness of banks, which are the building blocks of the
financial system, is an important indicator that reflects the effectiveness of
the financial system. It can be stated that the financial development of
countries with an effective financial system will be positively affected by
this situation. The paper aims to evaluate the effects of IMF financial
soundness indicators of the Turkish commercial banks which have an
important share in the Turkish banks, on the financial development index
of Türkiye. In this paper, an evaluation was made based on the IMF
Financial development index and IMF financial soundness indicators. Panel
data analysis was used and panel least squares model estimation was made
within the analysis. In line with the findings, it has been determined that
sensitivity to profitability, liquidity, and market risks of commercial banks
negatively affect financial development while the capital adequacy and
asset quality of commercial banks positively affect financial development.