The Profit Rate-Interest Rate Nexus: Evidence from Machine Learning Algorithms
The main purpose of this study is to examine potential predictors of profit rates and de- posit rates and to examine whether these rates are affected by identical factors. This paper empiri- cally addresses tree-based machine learning algorithms (e.g., boosting, bagging, random forest). The empirica...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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İLKE İlim Kültür Eğitim Vakfı
2023-02-01
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| Series: | Türkiye İslam İktisadı Dergisi |
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| Online Access: | https://tujise.org/content/6-issues/20-10-1/7-the-profit-rate-interest-rate-nexus-evidence-from-machine-learning-algorithms/tujise-a3704.pdf |
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| _version_ | 1841561488940072960 |
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| author | Mehmet Yeşilyaprak Ali Polat Önder Özgür Süleyman Şahal |
| author_facet | Mehmet Yeşilyaprak Ali Polat Önder Özgür Süleyman Şahal |
| author_sort | Mehmet Yeşilyaprak |
| collection | DOAJ |
| description | The main purpose of this study is to examine potential predictors of profit rates and de- posit rates and to examine whether these rates are affected by identical factors. This paper empiri- cally addresses tree-based machine learning algorithms (e.g., boosting, bagging, random forest). The empirical findings of the study demonstrate participation banks’ profit rates to be more influenced by industrial production due to these banks being in contact more with real economic activity. As ex- pected, however, domestic and global interest rates appear to have great significance in how deposit banks set their rates. This study contributes to the literature in two ways. First, it determines the potential predictors of profit rates and deposit rates in a data-rich environment. Second, the study uses random forest, bagging, and boosting algorithms as methodological tools and benefits from the apparent advantages these algorithms have empirically. |
| format | Article |
| id | doaj-art-690c0b4ad59e460db97ef890fa40413c |
| institution | Kabale University |
| issn | 2148-3809 |
| language | English |
| publishDate | 2023-02-01 |
| publisher | İLKE İlim Kültür Eğitim Vakfı |
| record_format | Article |
| series | Türkiye İslam İktisadı Dergisi |
| spelling | doaj-art-690c0b4ad59e460db97ef890fa40413c2025-01-03T01:36:15ZengİLKE İlim Kültür Eğitim VakfıTürkiye İslam İktisadı Dergisi2148-38092023-02-0110113516110.26414/A3704The Profit Rate-Interest Rate Nexus: Evidence from Machine Learning AlgorithmsMehmet Yeşilyaprak0https://orcid.org/0000-0001-8334-5191Ali Polat1https://orcid.org/0000-0001-6041-5003Önder Özgür2https://orcid.org/0000-0001-5221-4842Süleyman Şahal3https://orcid.org/0000-0003-4179-8998Beykoz UniversityAnkara Yildirim Beyazit UniversityAnkara Yildirim Beyazit University Turk EximbankThe main purpose of this study is to examine potential predictors of profit rates and de- posit rates and to examine whether these rates are affected by identical factors. This paper empiri- cally addresses tree-based machine learning algorithms (e.g., boosting, bagging, random forest). The empirical findings of the study demonstrate participation banks’ profit rates to be more influenced by industrial production due to these banks being in contact more with real economic activity. As ex- pected, however, domestic and global interest rates appear to have great significance in how deposit banks set their rates. This study contributes to the literature in two ways. First, it determines the potential predictors of profit rates and deposit rates in a data-rich environment. Second, the study uses random forest, bagging, and boosting algorithms as methodological tools and benefits from the apparent advantages these algorithms have empirically.https://tujise.org/content/6-issues/20-10-1/7-the-profit-rate-interest-rate-nexus-evidence-from-machine-learning-algorithms/tujise-a3704.pdfprofitinterestparticipation bankingislamic financebankusury |
| spellingShingle | Mehmet Yeşilyaprak Ali Polat Önder Özgür Süleyman Şahal The Profit Rate-Interest Rate Nexus: Evidence from Machine Learning Algorithms Türkiye İslam İktisadı Dergisi profit interest participation banking islamic finance bank usury |
| title | The Profit Rate-Interest Rate Nexus: Evidence from Machine Learning Algorithms |
| title_full | The Profit Rate-Interest Rate Nexus: Evidence from Machine Learning Algorithms |
| title_fullStr | The Profit Rate-Interest Rate Nexus: Evidence from Machine Learning Algorithms |
| title_full_unstemmed | The Profit Rate-Interest Rate Nexus: Evidence from Machine Learning Algorithms |
| title_short | The Profit Rate-Interest Rate Nexus: Evidence from Machine Learning Algorithms |
| title_sort | profit rate interest rate nexus evidence from machine learning algorithms |
| topic | profit interest participation banking islamic finance bank usury |
| url | https://tujise.org/content/6-issues/20-10-1/7-the-profit-rate-interest-rate-nexus-evidence-from-machine-learning-algorithms/tujise-a3704.pdf |
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