Title: Credit Risk Management: A Panel Data Analysis on The Islamic Banks in Turkey
Abstract: Rapid and dynamic changes in the global financial environment pose various risks for banking institutions. Islamic banks operating side by side with traditional banks are equally vulnerable to risks. The future of financial institutions largely depends on how well they manage risks. Credit risk is an important type of risk affecting the banking sector. The aim of this study is to determine the factors that affect credit risk management which is an important factor for the stability of the banking sector. For this purpose, quarterly financial data for the period 2014-2017 Islamic banks operating in Turkey are used. The study was conducted with panel data regression method. The results of the study show that there is a positive significant relationship between credit risk and capital adequacy ratio, net profit share income and natural logarithm of total assets. In addition, a negative and statistically significant relationship was found between the gross domestic product variable and credit risk, which are among the macroeconomic variables of the study.