What determines the banking sector performance in globalized financial markets? The case of Turkey

Ahmet Aysan and Sanli Ceyhan Darendeli

Physica A: Statistical Mechanics and its Applications, 2008, vol. 387, issue 7, 1593-1602

Abstract: This study attempts to give an insight into 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 the 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 C67 E44 G21 O11 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (22)

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Related works:
Working Paper: What Determines the Banking Sector Performance in Globalized Financial Markets: The Case of Turkey? (2007)
Working Paper: What Determines the Banking Sector Performance in Globalized Financial Markets: The Case of Turkey? (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:387:y:2008:i:7:p:1593-1602

DOI: 10.1016/j.physa.2007.11.003

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