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Bank Competition and Outreach: Evidence from Turkey

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  • Ahmet Faruk Aysan
  • Mustafa Disli
  • Koen Schoors

Abstract

In light of the importance of banking sector outreach and given concerns that competition may adversely affect it, this study explores the empirical linkage between banking structure and outreach in Turkey for the period 1988-2010. Bank-, province-, and bank-province-level estimation results indicate that competition is in general conducive to the outreach of banks. We do not find evidence for collusive behavior among banks when they have multimarket contact. At the province level, the presence of foreign-owned banks is associated with higher outreach, while at the bank-province level, we observe that outreach of domestic banks exceeds that of foreign banks. Together, these results suggest that there are procompetitive spillover effects from foreign banks to their domestic counterparts.

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Bibliographic Info

Article provided by M.E. Sharpe, Inc. in its journal Emerging Markets Finance and Trade.

Volume (Year): 49 (2013)
Issue (Month): S5 (November)
Pages: 7-30

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Handle: RePEc:mes:emfitr:v:49:y:2013:i:s5:p:7-30

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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=111024

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Keywords: bank competition; bank outreach; multimarket contact;

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Cited by:
  1. M. Disli & K. Schoors, 2013. "Bank rebranding and depositor loyalty," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/867, Ghent University, Faculty of Economics and Business Administration.

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