Concentration and Competition in the Banking Sector of Turkey
Result description
The paper estimates the competitive conditions and concentration in the Turkish banking industry during the period 2002-2010. The period starts after implementation of the comprehensive reform in the banking sector and lasts until culmination of the global financial crisis. The concentration ratio and the Herfindahl-Hirschman index are applied to measure level of concentration. We found the banking sector to be almost non-concentrated with exemption of deposit market where we revealed a slight concentration. However, there is a clear trend of increasing concentration at all segments of the Turkish banking sector over the analysed period. The Panzar-Rosse model is used for estimation of competitive conditions in the banking market. Specifically, we usea panel with data for most of the Turkish banks to estimate the H statistics. We concluded that the Turkish banking sector can be characterized as an industry with monopolistic competition that closely approaches monopoly. The results imp
Keywords
Turkish banking industryconcentration ratioHerfindahl-Hirschman indexPanzar-Rosse model
The result's identifiers
Result code in IS VaVaI
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Concentration and Competition in the Banking Sector of Turkey
Original language description
The paper estimates the competitive conditions and concentration in the Turkish banking industry during the period 2002-2010. The period starts after implementation of the comprehensive reform in the banking sector and lasts until culmination of the global financial crisis. The concentration ratio and the Herfindahl-Hirschman index are applied to measure level of concentration. We found the banking sector to be almost non-concentrated with exemption of deposit market where we revealed a slight concentration. However, there is a clear trend of increasing concentration at all segments of the Turkish banking sector over the analysed period. The Panzar-Rosse model is used for estimation of competitive conditions in the banking market. Specifically, we usea panel with data for most of the Turkish banks to estimate the H statistics. We concluded that the Turkish banking sector can be characterized as an industry with monopolistic competition that closely approaches monopoly. The results imp
Czech name
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Czech description
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Classification
Type
Jx - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Result continuities
Project
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2014
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Amfiteatru Economic
ISSN
1582-9146
e-ISSN
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Volume of the periodical
16
Issue of the periodical within the volume
36
Country of publishing house
RO - ROMANIA
Number of pages
16
Pages from-to
625-640
UT code for WoS article
000344607400013
EID of the result in the Scopus database
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Basic information
Result type
Jx - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP
AH - Economics
Year of implementation
2014