Which firms engage small, foreign, or state banks? And who goes Islamic? Evidence from Turkey

Steven Ongena and Ilkay Sendeniz-Yüncü

Journal of Banking & Finance, 2011, vol. 35, issue 12, 3213-3224

Abstract: We study a representative dataset from Turkey that identifies firm–bank connections. Banks in Turkey differ not only in size and nationality, but also in ownership and orientation (non-Islamic versus Islamic)—resulting in at least six distinct bank types. We estimate a multinomial logit of the choice by the firm of bank type. We document a strong correspondence between bank type and firm characteristics that is not always the same as has been documented so far for US datasets. For example, small firms engage large rather than small banks. Young, large, multiple-bank, and industry-diversified firms, that are located in or close to Istanbul, team up with foreign banks. Islamic banks mainly deal with young, multiple-bank, industry-focused and transparent firms.

Keywords: Islamic banking; Turkey; Lending relationships (search for similar items in EconPapers)
JEL-codes: G21 L11 L14 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (55)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:35:y:2011:i:12:p:3213-3224

DOI: 10.1016/j.jbankfin.2011.05.001

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