Parliamentary election cycles and the Turkish banking sector
AbstractThis paper analyzes the effects of parliamentary election cycles on the Turkish banking system. Using annual bank-level data representing all banks in Turkey during 1963-2007, we present evidence of meaningful differences in the structure of bank assets, liabilities and financial performance across different stages of the parliamentary election cycle. However, we find that government-owned banks' behavior does not meaningfully differ from that of either domestic and foreign-owned private-sector banks before, during or after elections. Our estimates also show that government-owned banks underperform both domestic and foreign-owned private-sector counterparts.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Banking & Finance.
Volume (Year): 34 (2010)
Issue (Month): 11 (November)
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Web page: http://www.elsevier.com/locate/jbf
Elections State banks Domestic banks Foreign-owned banks Loans Interest rate margin;
Other versions of this item:
- Christopher F. Baum & Mustafa Caglayan & Oleksandr Talavera, 2010. "Parliamentary Election Cycles and the Turkish Banking Sector," University of East Anglia Applied and Financial Economics Working Paper Series 002, School of Economics, University of East Anglia, Norwich, UK..
- Christopher F. Baum & Mustafa Caglayan & Oleksandr Talavera, 2009. "Parliamentary Election Cycles and the Turkish Banking Sector," Boston College Working Papers in Economics 705, Boston College Department of Economics, revised 14 May 2010.
- Christopher Baum & Mustafa Caglayan & Oleksandr Talavera, 2009. "Parliamentary Election Cycles and the Turkish Banking Sector," Working Papers 2009/5, Turkish Economic Association.
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
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