Foreign Bank Presence and Bank Spreads: Evidence from Turkey

Julide Yalcinkaya Koyuncu ()
Additional contact information
Julide Yalcinkaya Koyuncu: Bilecik University, The Faculty of Economics and Administrative Sciences, Department of Economics, Bilecik, Turkey

Czech Economic Review, 2011, vol. 5, issue 1, 064-075

Abstract: Using bank-level data for Turkey, this paper examines whether foreign banks are able to operate with lower spreads and whether the overall level of foreign bank participation in the banking system lowers spreads among domestic banks. Empirical analysis yields that foreign banks are able to charge lower spreads than domestic banks in Turkey. However, findings indicate that the overall level of foreign bank participation in the Turkish banking system does not ffect spreads of domestic banks directly. Instead, the overall level of foreign bank participation in the banking system affects the spreads indirectly through its effects on overhead expenses. Overhead expenses of all banks decrease as foreign bank participation increases.

Keywords: Foreign banks; Turkey; emerging markets (search for similar items in EconPapers)
JEL-codes: G32 N25 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://auco.fsv.cuni.cz/storage/104_2011_01_064.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fau:aucocz:au2011_064

Ordering information: This journal article can be ordered from
http://auco.cuni.cz/

Access Statistics for this article

More articles in Czech Economic Review from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Lenka Stastna ().