The impact of capital adequacy on the profitability of Turkish deposit banks in the period before and after the implementation of Basel II

The aim of this study is to analyze the effect capital adequacy Turkish deposit banks on their profitability (ROA). For purpose, panel data regression analysis was carried out using quarterly for period 2007Q4-2020Q3. Capital ratio (CAR) and equity assets (capital ratio) were used as an indicator adequacy. In addition these variables, bank-specific macroeconomic control which have bank performance, are also added model. According results, CAR a positive ROA banks. addition, in order see Basel II implementation, made under two periods, before after implementation by both at 5% significance level. Also, stronger relationship found between post-Basel period. This result shows that strong structure contributes high profitability.