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Competition and Stability: An Analysis of the Turkish Banking System

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  • Ömer Ýskenderoglu

    (Faculty of Economics and Business Administration, Niðde University, Turkey)

  • Serpil Tomak

    (Vocational School of Social Sciences,Department of Management and Organization, Mersin University, Turkey)

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    Abstract

    This paper examines the relationship between competition and stability in the Turkish banking sector using quarterly bank level data of 15 private commercial banks (domestic and foreigned-owned) between 2002-2012. There have been many theories stand out on the relationship between competition and stability of the banking sector so far. But theories of the competition-fragility view and competition-stability view are widely accepted theories in the literature. Dynamic panel data approach is employed to test the related tehories. However our findings indicate that the relationship between concentration and competition is not clear enough to emphasize a strict inference.

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    Bibliographic Info

    Article provided by Econjournals in its journal International Journal of Economics and Financial Issues.

    Volume (Year): 3 (2013)
    Issue (Month): 3 ()
    Pages: 752-762

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    Handle: RePEc:eco:journ1:2013-03-18

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    Web page: http://www.econjournals.com

    Related research

    Keywords: Competition; banking stability; financial system fragility;

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