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Bank Regulation in Dollarized Economies: The Case of Turkey

Author

Listed:
  • Erick W. Rengifo

    (Center for International Policy Studies, Economics Department, Fordham University, 441 E. Fordham Rd., Bronx, NY 10458, USA)

  • Emre Ozsoz

    (Social Studies Department, School of Liberal Arts, SUNY-FIT, 227 W 27th Street, NY 10001, USA)

  • Mustapha A. Akinkunmi

    (Brickfield Road Associates, 8 Onikoyi Street, Parkview Estate, Ikoyi, Lagos 101233 , Nigeria)

  • Eduardo Court

    (Centrum Cat´olica, Daniel Aloma Robles 125, Los Alamos de Monterrico Surco, Lima 33, Peru)

Abstract

Regulators in emerging markets are increasingly curtailing the practice of foreigncurrency lending. In such a move Turkish regulatory authorities banned foreign currencylending to households in 2009. This paper examines the evolution of financial dollarization inTurkey in the 2002–2009 period by looking the currency composition of loans and deposits inthe banking system and the macroeconomic developments. We find that the Turkish bankingsystem was unhedged against currency fluctuations and the regulators acted preemptively inbanning the practice.

Suggested Citation

  • Erick W. Rengifo & Emre Ozsoz & Mustapha A. Akinkunmi & Eduardo Court, 2013. "Bank Regulation in Dollarized Economies: The Case of Turkey," IJFS, MDPI, vol. 1(4), pages 1-17, November.
    • Handle: RePEc:gam:jijfss:v:1:y:2013:i:4:p:137-153:d:30412
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    References listed on IDEAS

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    Cited by:

    1. Emre Ozsoz & Mustapha Akinkunmi & Ismail Cagri Ay & Ademola Bamidele, 2017. "How Cbn Confronted The Meltdown: The Global Financial Crisis And The Central Bank Of Nigeria’S Response," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(01), pages 147-161, March.
    2. Sui, Meng & Rengifo, Erick W. & Court, Eduardo, 2021. "Gold, inflation and exchange rate in dollarized economies – A comparative study of Turkey, Peru and the United States," International Review of Economics & Finance, Elsevier, vol. 71(C), pages 82-99.

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