IDEAS home Printed from https://ideas.repec.org/a/bpj/rmeecf/v5y2009i1n1.html
   My bibliography  Save this article

Market Discipline in Turkey Before and After the 2001 Financial Crisis

Author

Listed:
  • Bulut Levent

    (Emory University)

  • Nal Osman

    (Texas Southern University)

Abstract

This paper compares the effectiveness of market discipline mechanisms in the banking sector before and after the 2001 financial crisis in Turkey. It employs an empirical model that incorporates the contemporaneous feedback effects between deposits growth rate and the implicit interest rate. Using 3SLS procedure, the results show that market disciplinary forces in Turkey have been effective both before and after the 2001 financial crisis. The findings show that the effect of the implicit interest rate on deposits becomes more sensitive to bank risk fundamentals after the 2001 financial crisis. Depositors, on the other hand, do not change their behavior in the aftermath of the crisis which can be explained by an implicit “too-big-to-fail" protection at work.

Suggested Citation

  • Bulut Levent & Nal Osman, 2009. "Market Discipline in Turkey Before and After the 2001 Financial Crisis," Review of Middle East Economics and Finance, De Gruyter, vol. 5(1), pages 1-23, May.
    • Handle: RePEc:bpj:rmeecf:v:5:y:2009:i:1:n:1
    DOI: 10.2202/1475-3693.1183
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1475-3693.1183
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1475-3693.1183?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Osman Nal & Andrew Cai, 2020. "Analyzing Impact of a Crisis on Bank Financial Ratios," Accounting and Finance Research, Sciedu Press, vol. 9(4), pages 1-17, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:rmeecf:v:5:y:2009:i:1:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.