Concentration and Competition in Turkish Banking Industry:The Evidence from 2000 to 2012

Serpil Kuzucu
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Serpil Kuzucu: Yapi Kredi Bank, Istanbul,Turkey

International Journal of Finance & Banking Studies, 2015, vol. 4, issue 3, 01-10

Abstract: Banking industry worldwide has been transformed due to globalization, financial liberalization,technological developments, government policies,deregulation of financial services, financial crises and increasein mergers and acquisitionssince 1980. With these changes, there is a trend towardsdecrease in the number of banks and increase in banking concentration. Increase in banking concentration might affect competitionconditions in banking industry. The decrease in the number of banks and the increase in banking concentration dominatethe Turkish banking industry after thebanking crisesin 2000 and 2001. This paper examines therelationship between concentration and competition in Turkish banking industry.Imeasure the size of banking concentration by concentration ratiosand Herfindahl-Hirschman indexwith the data ofcommercial deposit banks in Turkey from 2000 to 2012. Competition degree is measured by using Panzar Rosse model. The results of the studysuggest that there is no permanent relation between banking concentrationand competitionin Turkish banks.

Keywords: Banking industry; banking concentration; competition; PanzarRosse model (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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