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 1963–2005, 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 differ from either domestic or foreign-owned private sector banks before, during or after elections. Our estimates also show that government-owned banks underperform their domestic and foreign-owned private sector counterparts.
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Bibliographic InfoPaper provided by Turkish Economic Association in its series Working Papers with number 2009/5.
Length: 30 pages
Date of creation: 2009
Date of revision:
Elections; state banks; domestic banks; foreign-owned banks; loans; interest rate margin;
Other versions of this item:
- Baum, Christopher F. & Caglayan, Mustafa & Talavera, Oleksandr, 2010. "Parliamentary election cycles and the Turkish banking sector," Journal of Banking & Finance, Elsevier, vol. 34(11), pages 2709-2719, November.
- 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 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..
- 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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