What Determines the Banking Sector Performance in Globalized Financial Markets: The Case of Turkey?

Ahmet Faruk Aysan () and Sanli Pinar Ceyhan ()

MPRA Paper from University Library of Munich, Germany

Abstract: This study attempts to give an insight about the trend in the performance of the Turkish banking sector by conducting a panel data fixed effects regression analysis. The results reveal that efficiency change is negatively related to the number of branches. We find a positive relationship between loan ratio and the performance indices efficiency and efficiency change. Furthermore, bank capitalization is positively related to efficiency change. Interestingly however, return on equity is not statistically significant in explaining any of the efficiency measures. There is also no robust relationship between foreign ownership and efficiency. Finally, restructuring attempts in post-crises epoch robustly account for the improvement in efficiency scores in recent years.

Keywords: Panel Data Analysis; Efficiency; Productivity; Turkish Commercial Banks; Foreign Ownership (search for similar items in EconPapers)
JEL-codes: C23 E44 O11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-cwa and nep-eff
Date: 2007
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Related works:
Journal Article: What determines the banking sector performance in globalized financial markets? The case of Turkey (2008)
Working Paper: What Determines the Banking Sector Performance in Globalized Financial Markets: The Case of Turkey? (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:5495

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