Abbasoğlu, Osman Furkan and Aysan, Ahmet Faruk and Gunes, Ali (2007): Concentration, Competition, Efficiency and Profitability of the Turkish Banking Sector in the Post-Crises Period.
Download (252Kb) | Preview
After 2001 crisis, the macroeconomic environment led to important changes in Turkish banking sector which has experienced a process of concentration by involving in merger and acquisition activities and liquidation of some insolvent banks. Using the data from the detailed balance sheets of the banks that operated in the years from 2001 to 2005, we examine the degree of concentration and degree of competition in the market by applying Panzar and Rosse’s approach. We also explore the existence of relationship between efficiency and profitability of the banks taking into account the internationalization of banking. Our results do not suggest the existence of relationship between concentration and competition. There is also no robust relationship between efficiency and profitability.
|Item Type:||MPRA Paper|
|Original Title:||Concentration, Competition, Efficiency and Profitability of the Turkish Banking Sector in the Post-Crises Period|
|Keywords:||Concentration; Competition; Efficiency; Profitability of the Turkish Banking Sector|
|Subjects:||G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets
G - Financial Economics > G2 - Financial Institutions and Services > G20 - General
|Depositing User:||Ahmet Faruk Aysan|
|Date Deposited:||30. Oct 2007|
|Last Modified:||13. Feb 2013 05:24|
Al, H. and A. F. Aysan “Assessing the Preconditions in Establishing an Independent Regulatory and Supervisory Agency in Globalized Financial Markets: The Case of Turkey”, International Journal of Applied Business and Economic Research, 4(2), (2006), 125-146.
Altunbaş, Y., E. P. M. Gardener, P. Molyneux, B. Moore “Efficiency in European Banking” European Economic Review, 45 (2001), 1931-1955.
Annual Reports 2001-2005 Banking Regulation and Supervision Agency, Turkey.
Aysan, A. F. and Ş. P. Ceyhan “Internationalization of the Financial Sector: Issues and Impacts on Turkey”, Globalization and Global Knowledge Economy of the International Conference of Business, Management and Economics Proceedings, 1 (2006), 111-124.
Aysan, A. F. and Ş. P. Ceyhan “Why Do Foreign Banks Invest in Turkey?”, Asian and African Journal of Economics and Econometrics, 7 (1) (2007a) 65-80.
Aysan, A. F. and Ş. P. Ceyhan “Market Disciplining Role of Crisis: The Restructuring of the Turkish Banking Sector”, Bogazici University Working Paper, ISS/EC 2007-14, (2007b) Istanbul.
Aysan, A. F. and L. Yildiz “The Regulation of the Credit Card Market in Turkey”, forthcoming in the International Research Journal of Finance and Economics, (2007).
Beck, Thorsten, Aslı Demirgüç-Kunt, Ross Levine “Bank Concentration, Competition, and Crises: First Results” Journal of Banking and Finance, 30 (2006), 1581-1603.
Berger Allen N. “The Profit-Structure Relationship in Banking - Tests of Market- Power and Efficient-Structure Hypotheses.” Journal of Money, Credit, and Banking, 27 (2) (1995), 404-431.
Berger, Allen N. and Timothy H. Hannan “The efficiency cost of market power in the banking industry: a test of the “quiet life” and related hypotheses.” Review of Economics and Statistics, (1998), 454-465.
Berger, Allen N., and Timothy H. Hannan “The Price-Concentration Relationship in Banking.” The Review of Economics and Statistics, Vol. 71, No. 2 (May, 1989), 291-299.
Berger, Allen N., and David B. Humphrey “Bank Scale Economies, Mergers, Concentration, and Efficiency: The U.S. Experience.” The Wharton Financial Institutions Center, 1994.
Berger, Allen N., Aslı Demirgüç-Kunt, Ross Levine, and Joseph G. Haubrich “Bank Concentration and Competition: An Evolution in the Making” Journal of Money, Credit, and Banking, Vol. 36, No. 3 (Part 2), (June, 2004), 433-451.
Bikker, J. A., and K. Haaf “Competition, Concentration, and Their Relationship: An Empirical Analysis of the Banking Industry” Journal of Banking and Finance, Vol. 26, No. 11, (Nov., 2002), 2191-2214.
Bikker, J. A., J.M. Groeneveld “Competition and Concentration in the EU Banking Industry” Kredit und Kapita,l 33 (2002), 62-98.
Claessens, Stijn, and Luc Laeven “What Drives Bank Competition? Some International Evidence” Journal of Money, Credit, and Banking, Vol. 36, No. 3 (Part 2), (June, 2004), 563-583.
Işık, İhsan, and M. Kabir Hassan “Technical, Scale, and Allocative Efficiencies of Turkish Banking Industry” Journal of Banking and Finance, 26 (2002), 719-766.
Jansen, D., and J. de Haan “Increasing Concentration in European Banking: A Macro-level Analysis” De Nederlandsche Bank Research Department, Research Memorandum WO no. 743, 2003.
Schure, Paul, Rien Wagenvoort “Economies of Scale and Efficiency in European Banking: New Evidence” European Investment Bank Economics and Financial Report, 1999.
Smirlock, Michael “Evidence on the (Non) Relationship between Concentration and Profitability in Banking.” Journal of Money, Credit, and Banking, Vol. 17, No. 1, (Feb., 1985), 69-83.
Turati, Gilberto “Cost Efficiency and Profitability in European Commercial Banking: Implications for Antitrust Analysis.” PhD Dissertation, (June, 2003)
Yeyati, Eduardo Levy, and Alejandro Micco “Concentration and Foreign Penetration in Latin American Banking Sectors: Impact on Competition and Risk.” Journal of Banking and Finance, 31 (2007), 1633-1647.