Comparison of the Determinants of Bank Profitability in Regard to Deposit and Participation Banks in Turkey

In this study, participation banks and conventional banks in Turkey are analyzed in terms of profitability between 2005 and 2014 years. The endogenous and exogenous variables influencing banks' return on assets, return on equity and profit before tax are tested by using panel data analysis for both type of banks. The main aim of the study is analyzing if the determinants of profitability for participation banks and conventional banks differ from each other and researching the influence of 2008 global financial crisis on banks' profitability. By using panel data analysis fixed effect model, it is found some differences on the influences of micro and macro independent variables on profit type of both of the banks. Finally, it is found that 2008 global financial crisis effected Turkish banks' profitability negatively in 2008 and positively in 2009.