Banks are making a lot of money?

Banks are making a lot of money? ...

In fact, economies consist of three sectors: private sector, public sector (government) and finance sector. Financial sector refers to the currencies of economies. When it comes to money, banks come to mind. Therefore, banks are like the essential vessels of economies. On the one hand, banks collect the money of the surpluses as deposits and, on the other hand, distribute them as loans to those in need. Banks are, in a sense, money trading; just as other businesses in the real sector trade goods and services reel

banks from time to time constitute the target of political power in Turkey. Especially in times of economies, they are like scapegoats. For example, before and during the decisions of April 5, 1994, banks were the target of turning all the arrows. Likewise, prior to the February 21, 2000 decisions, it has always been at the center of the discussions.

Nowadays they are under the lens of what the banks have done and won. The level of interest is a matter of debate. Let us look at the technical side of the business, leaving aside the political side of the business. At this point, let us first present some short bank information. We will summarize and discuss the results of the BRSA's 2016 year-end banking activity.

Obviously, let's try to perceive the size and strength of the banks. Today, there are 52 banks located in Turkey. 34 of them are deposit banking, 13 of them are development and investment banking and 5 of them are non-interest (Islamic) banking. 
The total number of branches is around 12 thousand. The number of employees in the banking sector is 211 thousand people.

The size of assets constituting the assets of the Bank of GDP, slightly above Turkey. So Turkey's total assets of the Turkish banking GDP ratio rose to 1.1 cases. So the banks are big enough and even very strong. The total assets of the banks are assets of 2.7 quadrillion TL. Of this, 1.7 quadrillion liras are the credit receivables of banks. On the other hand, the total liabilities of the banks, which are technically equal to their total assets, are in the form of deposits amounting to TL 1.4 quadrillion. Therefore, the loan to deposit ratio has been around 1.2 since the last few years. In other words, the banks collect 100 lira each despite the deposit of 120 lira credit.

In other words, banks, as deposits, primarily from the deposits obtained from a variety of sources are plotting. Of course, banks also earn interest income from loans; he pays interest for the deposits he collects. In the end, individual banking transactions, deposits and credit activities are gaining in return for other banking transactions.

In 2016, banks received TL 195 billion in lending interest income, while they paid 103 billion Turkish liras. Even when other operating income and expenses are taken into consideration, banks have provided 38 billion TL of operating income as of the end of 2016.

What does this profitability mean? ...

Banks, according to their equity, has earned around 14 percent. In other words, the return on equity was 14 percent. On the other hand, banks made 1.9% gain compared to their assets.

It's like there's no weirdness up here! ...

But when the difficult conditions of 2016 are taken into account, oddities emerge.

Namely; In 2015, while the profitability of banks according to their equity was around 11 percent, this ratio increased to 14 percent in 2016 as mentioned above. So; According to 2015, banks' profits increased by 27 percent in 2016.

But in the middle of the situation and conditions of Turkey's economy in 2016. Many sectors or sectors have lost profit while losing sectors. Obviously, the high profitability of banks is noteworthy when the situation of the private sector, where banks are selling money, is getting worse or worse. This situation is very reasonable and not sustainable. What they say ene Weeping weed will not help you laugh de.