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Year 2015, Volume: 4 Issue: 1, 0 - 0, 29.03.2015

Taner Sekmen , Omer Akkus , İlyas Siklar

Abstract

References

  • • Akyüz, Y. and Boratav, K. (2002), The Making of Turkish Financial Crisis, UNCTAD Discussion Paper, 158
  • • Al-Muharrami, S. and Matthews, K. (2009). Market power versus efficient- structure in Arab GCC banking. Applied Financial Economics, 19, 1487–1496.
  • • Alper, C. E and Öniş, Z.(2004),The Turkish Banking System and the IMF in the Age of Capital Account Liberalization, New Perspectives on Turkey, 30, 25-55
  • • Andries¸ , A. M. and Capraru, B. (2012a). Competition and efficiency in EU27 banking systems. Baltic Journal of Economics, 12(1), 41–60.
  • • Andries, A.M. and Capraru, B. (2013). The nexus between competition and efficiency: The European banking industries experience. International Business Review, 22(5), 1046-1059.
  • • Aydinli, I. (1996) Market Structure of the Turkish Banking System: 1991-1994 (in Turkish), Capital Markets Board Publication, No. 40, Ankara.
  • • Aysan, A.F., Güneş, A. and Abbasoğlu, O.F.(2007), Concentration, Competition, Efficiency and Profitability of Turkish Banking Sector In the Post-Crisis Period, Boğaziçi University,Department Of Economics, Research Paper, ISS/EC 2007-20, Istanbul.
  • • Bain, J. S. (1951). ‘Relation of Profit Rate to Industry Concentration’, Quarterly Journal of Economics, Vol. 65, pp. 293–324.
  • • Bikker, J.A. and Groeneveld, J.M. (2000). Competition and Concentration In The EU Banking Industry, Kredit Und Kapital, 33, 62-98.
  • • Bikker, J.A. and Haaf , K. (2000). Measures of Competition and Concentration in The Banking Industry: A Riview of The Literature. De Nederlandsche Bank Research Series Supervision, No: 27, September.
  • • Bikker, J. A and Haaf, K. (2002). Competition, Concentration and Their Relationship: An Empirical Analysis of the Banking Industry. Journal of Banking and Finance, 26(11), 2191-2214.
  • • Casu, B. and Girardone, C. (2009). Testing the relationship between competition and efficiency in banking: A panel data analysis. Economics Letters, 105, 134–137.
  • • Celik, T. and Kaplan, M. (2010), Türk Bankacılık Sektöründe Etkinlik ve Rekabet :2002-2007,Sosyoekonomi, 2010(2), 100201.
  • • Cerasi, V. and Daltung, S. (2000). The Optimal Size of a Bank: Costs and Benefits of Diversification. European Economic Review, 44, 1701-1726.
  • • Claessens, S. and Laeven, L. (2003). What Drives Bank Competition?, Some International Evidence, World Bank Policy Research Working Paper No.3113, World Bank.
  • • Claessens, S., and Laeven, L. (2004). What Drives Bank Competition?, Some International Evidence, Journal of Money, Credit, and Banking, 36, Part 2, 563- 584.
  • • De Bandt, O. and Davis, E.P. (2000). Competition, Contestability and Market Structure in European Banking Sectors On The Eve Of EMU. Journal of Banking and Finance, 24, 1045-1066.
  • • Delis, M. and Tsionas, E. (2009). The joint estimation of bank-level market power and efficiency. Journal of Banking and Finance, 33(10), 1842–1850.
  • • Drakos, K. and Konstantinou, P. (2003). Competition and concentration in transition banking: an empirical analysis. EEFS Conference, Heraklion, Crete
  • • Emek U. (2005). Bankacılık Sisteminde Rekabet ve İstikrar İkileminin Analizi : Türkiye Örneği, Doktora Tezi, Ankara Ünivesitesi Sosyal Bilimler Enstitüsü, Ankara.
  • • Gelos, R.G. and Roldos, J., (2004). Consolidation and Market Structure In Emerging Market Banking Systems. Emerging Markets Review 5, 39– 59.
  • • Günalp, B. and Celik T. (2006). Competition in the Turkish Banking Industry, Applied Economics, 38, 1335-1342.
  • • Fernandez de Guevara, J., Maudos, J. and Perez, F. (2007). Integration and competition in the European financial markets. Journal of International Money and Finance, 26, 26–45.
  • • Hughes, J.P. and Mester, L. (1998). Bank capitalization and cost: Evidence of scale economies in risk management and signaling. Review of Economics and Statistics, 80, 314-325.
  • • Kasman, A. (2001). Competitive Conditions in the Turkish Banking Industry, Ege Akademik Bakıs, 1(2), 72-82.
  • • Koetter, M., Kolari, J. W. and Spierdijk, L. (2012). Enjoying the quiet life under deregulation? Evidence from adjusted lerner indices for U.S. banks. Review of Economics and Statistics, 94(2), 462–480.
  • • Lerner, A. (1934). The Concept of Monopoly and the Measurement of Monopoly Power. Review of Economic Studies 1, 157–175.
  • • Mason, E.S. (1939). Price and production policies of large-scale enterprises. American Economic Review 29 (Supplement), 61–74.
  • • Murjan, W. and Ruza, C. (2002). The competitive nature of the Arab Middle Eastern Banking Markets. International Advances in Economics, 267–275.
  • • Nathan, A. and Neave, E.H. (1989). Competition and Contestability in Canada’s Financial System: Empirical Results, Canadian Journal of Economics, 22(3), 576- 594.
  • • Sayılgan, G and O. Yıldırım (2009), Determinants of Profitability in Turkish Banking Sector: 2002-2007, International Research Journal of Finance and Economics, 28, 207-214.
  • • Shaffer, S. (1993). A test of competition in Canadian banking. Journal of Money, Credit and Banking 25, 49–61.
  • • Shaffer, S. (1989). Competition in the US banking industry. Economic Letters, 29, 323-323.
  • • Shaffer, S. (2004). Patterns of competition in banking. Journal of Economics and Business, 56, 287-313.
  • • Shaffer, S. and Disalvo, J. (1994). Conduct in a banking duopoly. Journal of Banking and Finance, 18, 1063–1082.
  • • Weill, L. (2004). On the relationship between competition and efficiency in the EU banking sectors. Kredit and Kapital, 3, 329–352.
  • • Yeyati, E.L., and Micco, A., (2003). Concentration and Foreign Penetration in Latin American Banking Sectors: Impact on Competition and Risk (Inter-American Development Bank, Research Department, Working Paper 499).
  • • Yildirim, H.S. and Philippatos, G.C. (2002). Competition and Contestability in Central and Eastern European Banking Markets, University of Tennessee, Working Paper, September.

COMPETITIVE CONDITIONS IN THE TURKISH BANKING SYSTEMS

Year 2015, Volume: 4 Issue: 1, 0 - 0, 29.03.2015

Taner Sekmen , Omer Akkus , İlyas Siklar

Abstract

 In this paper, we investigate competition in the Turkish banking sector over the period 2003– 2012. To understand the competitive conditions in the Turkish banking sector, we use the well-known Panzar-Rosse model based on a nonstructural estimation of the H-statistic by employing the quarterly panel data set. The empirical evidence indicates that the Turkish banking sector operates under conditions of monopolistic competition. Therefore, although there have been growing structural changes in the Turkish banking sector since the 2000s, there has been no remarkable change in the market structure of the Turkish banking sector compared to previous studies, and it can still be characterized by monopolistic competition.

References

  • • Akyüz, Y. and Boratav, K. (2002), The Making of Turkish Financial Crisis, UNCTAD Discussion Paper, 158
  • • Al-Muharrami, S. and Matthews, K. (2009). Market power versus efficient- structure in Arab GCC banking. Applied Financial Economics, 19, 1487–1496.
  • • Alper, C. E and Öniş, Z.(2004),The Turkish Banking System and the IMF in the Age of Capital Account Liberalization, New Perspectives on Turkey, 30, 25-55
  • • Andries¸ , A. M. and Capraru, B. (2012a). Competition and efficiency in EU27 banking systems. Baltic Journal of Economics, 12(1), 41–60.
  • • Andries, A.M. and Capraru, B. (2013). The nexus between competition and efficiency: The European banking industries experience. International Business Review, 22(5), 1046-1059.
  • • Aydinli, I. (1996) Market Structure of the Turkish Banking System: 1991-1994 (in Turkish), Capital Markets Board Publication, No. 40, Ankara.
  • • Aysan, A.F., Güneş, A. and Abbasoğlu, O.F.(2007), Concentration, Competition, Efficiency and Profitability of Turkish Banking Sector In the Post-Crisis Period, Boğaziçi University,Department Of Economics, Research Paper, ISS/EC 2007-20, Istanbul.
  • • Bain, J. S. (1951). ‘Relation of Profit Rate to Industry Concentration’, Quarterly Journal of Economics, Vol. 65, pp. 293–324.
  • • Bikker, J.A. and Groeneveld, J.M. (2000). Competition and Concentration In The EU Banking Industry, Kredit Und Kapital, 33, 62-98.
  • • Bikker, J.A. and Haaf , K. (2000). Measures of Competition and Concentration in The Banking Industry: A Riview of The Literature. De Nederlandsche Bank Research Series Supervision, No: 27, September.
  • • Bikker, J. A and Haaf, K. (2002). Competition, Concentration and Their Relationship: An Empirical Analysis of the Banking Industry. Journal of Banking and Finance, 26(11), 2191-2214.
  • • Casu, B. and Girardone, C. (2009). Testing the relationship between competition and efficiency in banking: A panel data analysis. Economics Letters, 105, 134–137.
  • • Celik, T. and Kaplan, M. (2010), Türk Bankacılık Sektöründe Etkinlik ve Rekabet :2002-2007,Sosyoekonomi, 2010(2), 100201.
  • • Cerasi, V. and Daltung, S. (2000). The Optimal Size of a Bank: Costs and Benefits of Diversification. European Economic Review, 44, 1701-1726.
  • • Claessens, S. and Laeven, L. (2003). What Drives Bank Competition?, Some International Evidence, World Bank Policy Research Working Paper No.3113, World Bank.
  • • Claessens, S., and Laeven, L. (2004). What Drives Bank Competition?, Some International Evidence, Journal of Money, Credit, and Banking, 36, Part 2, 563- 584.
  • • De Bandt, O. and Davis, E.P. (2000). Competition, Contestability and Market Structure in European Banking Sectors On The Eve Of EMU. Journal of Banking and Finance, 24, 1045-1066.
  • • Delis, M. and Tsionas, E. (2009). The joint estimation of bank-level market power and efficiency. Journal of Banking and Finance, 33(10), 1842–1850.
  • • Drakos, K. and Konstantinou, P. (2003). Competition and concentration in transition banking: an empirical analysis. EEFS Conference, Heraklion, Crete
  • • Emek U. (2005). Bankacılık Sisteminde Rekabet ve İstikrar İkileminin Analizi : Türkiye Örneği, Doktora Tezi, Ankara Ünivesitesi Sosyal Bilimler Enstitüsü, Ankara.
  • • Gelos, R.G. and Roldos, J., (2004). Consolidation and Market Structure In Emerging Market Banking Systems. Emerging Markets Review 5, 39– 59.
  • • Günalp, B. and Celik T. (2006). Competition in the Turkish Banking Industry, Applied Economics, 38, 1335-1342.
  • • Fernandez de Guevara, J., Maudos, J. and Perez, F. (2007). Integration and competition in the European financial markets. Journal of International Money and Finance, 26, 26–45.
  • • Hughes, J.P. and Mester, L. (1998). Bank capitalization and cost: Evidence of scale economies in risk management and signaling. Review of Economics and Statistics, 80, 314-325.
  • • Kasman, A. (2001). Competitive Conditions in the Turkish Banking Industry, Ege Akademik Bakıs, 1(2), 72-82.
  • • Koetter, M., Kolari, J. W. and Spierdijk, L. (2012). Enjoying the quiet life under deregulation? Evidence from adjusted lerner indices for U.S. banks. Review of Economics and Statistics, 94(2), 462–480.
  • • Lerner, A. (1934). The Concept of Monopoly and the Measurement of Monopoly Power. Review of Economic Studies 1, 157–175.
  • • Mason, E.S. (1939). Price and production policies of large-scale enterprises. American Economic Review 29 (Supplement), 61–74.
  • • Murjan, W. and Ruza, C. (2002). The competitive nature of the Arab Middle Eastern Banking Markets. International Advances in Economics, 267–275.
  • • Nathan, A. and Neave, E.H. (1989). Competition and Contestability in Canada’s Financial System: Empirical Results, Canadian Journal of Economics, 22(3), 576- 594.
  • • Sayılgan, G and O. Yıldırım (2009), Determinants of Profitability in Turkish Banking Sector: 2002-2007, International Research Journal of Finance and Economics, 28, 207-214.
  • • Shaffer, S. (1993). A test of competition in Canadian banking. Journal of Money, Credit and Banking 25, 49–61.
  • • Shaffer, S. (1989). Competition in the US banking industry. Economic Letters, 29, 323-323.
  • • Shaffer, S. (2004). Patterns of competition in banking. Journal of Economics and Business, 56, 287-313.
  • • Shaffer, S. and Disalvo, J. (1994). Conduct in a banking duopoly. Journal of Banking and Finance, 18, 1063–1082.
  • • Weill, L. (2004). On the relationship between competition and efficiency in the EU banking sectors. Kredit and Kapital, 3, 329–352.
  • • Yeyati, E.L., and Micco, A., (2003). Concentration and Foreign Penetration in Latin American Banking Sectors: Impact on Competition and Risk (Inter-American Development Bank, Research Department, Working Paper 499).
  • • Yildirim, H.S. and Philippatos, G.C. (2002). Competition and Contestability in Central and Eastern European Banking Markets, University of Tennessee, Working Paper, September.
There are 38 citations in total.

Details

Journal Section Articles
Authors

Taner Sekmen

Omer Akkus

İlyas Siklar

Publication Date March 29, 2015
Published in Issue Year 2015 Volume: 4 Issue: 1

Cite

APA Sekmen, T., Akkus, O., & Siklar, İ. (2015). COMPETITIVE CONDITIONS IN THE TURKISH BANKING SYSTEMS. Journal of Business Economics and Finance, 4(1). https://doi.org/10.17261/Pressacademia.201519950

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