@article{2020,title={ Does Bank Type Affect the Profitability? An Econometric Research on Conventional and Islamic Banks},abstractNode={As in all world, in Turkey banks have quite an active position within the national economy. Banking sector providing transfer of capital accumulation to real investments, in 2005, with the arrangement, included deposit banks and development and investment banks as well as participation banks. Thus, two types of banks with different philosophy and principles had the opportunity to operate subject to the same regulations in the same competitive environment. Profitability is a matter that needs to be carefully examined in order to sustain the life of the enterprises. On the other hand, banking is a sector that is worth analyzing with the profitability numbers announced even during the global crisis. The aim of this study is to determine the factors affecting the profitability of banks. In this study, the data of 3 participation banks and 16 conventional banks operating in Turkish Banking Sector and having regular data between 2006-2018, was used. Descriptive and inferential statistical methods were used in the study. Independent internal variables, bank type, asset size, credit risk, liquidity risk, operational efficiency, capital structure; independent external variables, inflation and GDP growth rate; dependent variables were taken as return on equity and return on assets. The number of horizontal section units of the panel data is and the number of time units obtained for each horizontal section unit is . The data set consists of a total of 988 observations. Stata package program was used for data analysis. The study contributes to the literature by distinguishing it from other studies conducted in terms of analysis period, variables and sample. First, the effect of banking type on profitability was examined. Hypothesis tests were tested by creating a panel data regression where return on assets is a dependent variable. Similarly, the regression result was obtained for the return on equity variable. As a result, no significant impact was detected in models that tested the effect of bank type (conventional / Islamic) on return on equity and return on assets. In the second stage, In the second stage; in order to examine whether the variables differ according to bank type, t test was performed. As a result, it was found that operational efficiency, total assets representing the bank size, liquidity risk and financial risk were significantly lower in Islamic banks than in conventional banks.},author={Ümran Münire KAHRAMAN-Suna AKTEN ÇÜRÜK - Mine IŞIK},year={2020},journal={Turkish Studies-Economics,Finance,Politics}}