A research on the problems and financial performance of banking sector in Northern Cyprus after global financial crisis

摘要

The Global financial crisis has been considered as different from the other crises ever lived in 20 year of time because of its effects on the Globe. In this context, it is crucial to predict to what extent the crisis, which started in financial markets, will affect the economies of the developing countries as well as the developed countries. Unfortunately, it is not possible for the banking sector to avoid all the effects of this and similar international crises. In this study, the effects of the Global financial crisis on the banking sector in Northern Cyprus were aimed to be examined. The financial information of Turkish Cypriot banking sector covers the period 2003 to 2009 and the ratios used to carry out the analysis are profitability, equity, liquidity and the quality of assets.? As conclusive remarks, the impact of crisis had been very limited on the Turkish Cypriot banking sector with low degree of its external integration except turkey and structural reforms taken in both Turkey and Northern Cyprus. However, Turkish Cypriot banking sector have serious problems among which Judicial extension of the bankruptcy process related to non-performing loans”, “Lack of direct access to international markets due to Cyprus problem”, “Economic instability” are? the main ones. Furthermore, global financial crisis affected Turkish Cypriot banking groups at remarkably different levels. Such that, branch banks exhibited better performance in almost all respects compared to other groups.? Unfortunately, the performance of public banks requiring structural and administrative measures fell behind other banks groups.