Off-Balance Sheet Activities Impact on Commercial Banks Performance: An Emerging Market Perspective

摘要

This paper examines the effect of off-balance sheet (OBS) activities on performance of the banks listed on Istanbul Stock Exchange (ISE). We use four measures of performance including bank’s risk exposures, profitability, leverage, and liquidity position. We find that both bank-specific risk and foreign exchange rate risk are positively related with OBS activities. This indicates that OBS activities increase bank-specific and foreign exchange risk exposures of the banks in Turkey. The positive relationship might serve as a warning to bank’s speculative action using OBS transactions in the market. The results also indicate that OBS activities, due to its hedging perception, improve bank’s stock returns but have a negative impact on return on equity. In addition, OBS activities do not have a statistically significant impact on leverage or liquidity.Sa?etakOvaj rad istra?uje utjecaj vanbilan?nih aktivnosti na poslovanje banaka koje kotiraju na Istambulskoj burzi (ISE). Istra?ivanje je provedeno na ?etiri mjere uspje?nosti bankovnog poslovanja: izlo?enost rizicima, profitabilnost, zadu?enost i likvidnost. Rezultati pokazuju da su nesistemski, bankovno-specifi?ni rizik te valutni rizik u pozitivnoj vezi s vanbilan?nim aktivnostima. Ovakvo stanje je pokazatelj da vanbilan?ne aktivnosti pove?avaju nesistemski i valutni rizik banaka u Turskoj. Dokazana pozitivna veza mo?e slu?iti kao upozorenje u slu?aju ?pekulativnog kori?tenja vanbilan?nih aktivnosti na tr?i?tu. Dobiveni rezultati tako?er pokazuju da zbog percepcije njihovog kori?tenja u svrhu za?tite, vanbilan?ne aktivnosti pove?avaju prinose na bankovne dionice ali istovremeno smanjuju prinos na kapital banaka. Osim toga, vanbilan?ne aktivnosti nemaju statisti?ki signifikantan utjecaj na zadu?enost i likvidnost banke.