International Trade and Finance Department Assist. Prof. Dr. Serkan DEMİREL and Res. Assist. Gökhan ÖZBİLGE, their article titled "The Effects of Banking Sector Performance on Financial Development in Turkey", which they discussed together with Higher Education Supervisory Board member Prof. Dr. Ahmet ULUSOY, was published in the Journal of the Human and Social Science Researches. The aim of the study is to examine the effects of selected ratios representing banking performance on financial development in Turkey. For this purpose, data from the International Monetary Fund and The Banks Association of Turkey for the period 2002-2020 were used and the Arellano and Bond Generalized Moment (GMM) method was used. These findings highlight the importance of capital adequacy decisions that move in the same direction as financial development and assist banks in efficiently utilizing their equity at optimal risk levels. Furthermore, it is understood that the ratio of total loans to total deposits, which can help adjust structural liquidity and thus credit flows for a bank, also has the potential to influence financial development in the same way. On the other hand, the inverse relationship between borrowings and total loans and financial development should be considered as a necessity for adjustments and preferences related to risk factors in the banking sector. Lastly, it should be emphasized that the unexpected inverse relationship between profitability and financial development may be a consequence of banks' ability to extend credit.
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