Browsing by Author "Teker,S."

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Citation Count: 4
Economic value added performances of publicly owned banks: Evidence from Turkey
(2011) Teker,D.; Teker,S.; Sönmez,M.
Economic Valued Added (EVA) is a recent financial tool that helps to determine the true shareholder wealth contribution of a bank. Although return on equity (ROE), net profit margin and capital adequacy ratio are widely used as proxies to measure the banking performance, inclusion of a cost of capital employed sets EVA method apart from other popular measures of bank performance. The EVA application in banks is relatively new. It was first implemented in 1994, and it is not as well known as other measures of bank performance. EVA is computed as the difference between net operating profit after taxes (NOPAT) and the cost of capital invested. The purpose of this study is to employ EVA measuremets as a performance indicators for Turkish banks listed in Istanbul Stock Exchange. The data cover the period of 2006-2010. EVA value of each bank per year is computed and ranked. EVA values of banks simply refer economic profits of banks since economic profits creates true value for investors rather than accounting profits. Hence, EVA results and ranking of banks convey critical information for decision makers. © EuroJournals Publishing, Inc. 2011.
Citation Count: 1
Foreign direct investments: Asian and European transition economies
(Econjournals, 2014) Teker,S.; Tuzla,H.; Pala,A.
Transition economies in Asian and European region have been showing a great performance and attracting large sum of foreign direct investments in recent years. Although the foreign direct investments totaled only 500 million USD in 1992 for all these transition countries, it is around 270 billion USD as of 2011. This study investigates the trends and dispersion of foreign direct investments in these two geographically distinct regions for the period of 1992-2011. The results show that the transition economies in the Asian side look to perform better for accumulating much larger sum of foreign direct investments while the transition economies in the European side are more successful for having a higher foreign direct investments per capita. © 2014 Econjournals. All rights reserved.
Citation Count: 2
Measuring credit risk of a bank’s corporate loan portfolio using advanced internal ratings base approach
(2006) Teker,S.; Akçay,B.; Turan,M.
The use of technical and advanced approaches in the measurement of credit risk of banks’ portfolios has nowadays become a very hot issue. The most recent technical report issued by the Basel Committee in May 2003 has concentrated heavily on the measurement of credit risk using either foundation or advanced Internal Ratings Base (IRB) approaches. This empirical research study attempts to measure credit risk of a bank’s corporate loan portfolio, including firms from 10 different Turkish sectors. The monthly observations of the total amount of corporate loans and the total amount of corporate loans at default across various sectors are downloaded from the web page of Central Bank of Turkey (CBT) in a period of 1999-2002. This period covers 47 monthly observations since CBT has captured sectoral corporate loans beginning of 1999. Therefore, the observed sectoral default rates are needed to be simulated to obtain a nicely shaped distribution. Monte Carlo simulation is applied for 1,000 times. Based on the simulated default rates, the expected sec-toral default rates are computed. Next, a credit quality rating scale is fitted into sectoral default rates distributions. Finally, the sectoral weights in the whole loan portfolio are multiplied by the expected sectoral default rates matrix, considering cross-sectoral correlations to get the total amount of the bank’s credit risk and capital requirement. It is assumed that sectoral monthly default rates are a good representative of the default risk of a sample bank’s corporate loan portfolio since no publicly available data on any particular bank’s corporate loan portfolio composition exists. Nevertheless, this research may be a good application for measuring the credit risk of banks’ corporate loan portfolios using advanced IRB approach. © 2006, Taylor & Francis Group, LLC. All rights reserved.