Factors Affecting Bank Profitability’s During Crisis Periods in Eastern Europe and Türkiye: A Comparative Analysis

This study examines the profitability performance of banks in times of financial crisis in Türkiye, Russia, Georgia and Poland, which are the countries of Eastern Europe, and reveals which internal factors affect profitability. Panel data for banks cover sixteen-year-period from January 2007 to January 2023. The research sample is balanced panel data. The research examines the financial sector data of more than one country. Ridge regression method was preferred because there may be multiple linear problems in such a complex sample, and it is the analysis method that brings all variables together in a single analysis and gives the most optimum results. Return on Assets (ROA) and Return on Equity (ROE) were taken into account as dependent variables for the profitability of the bank in the research. The results of the study suggest that the profitability of the bank is significantly affected by internal determinants. The most important output of the study is that the non-performing loans have a negative impact on ROA and ROE during all crisis periods, this finding is the same in all countries and this effect fluctuates during crisis periods. Another important output is that the negative impact on the ROA, where the positive effects of the increase in liquid items of banks on equity tend to increase during periods of crisis, is also decreasing.