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Competition and Stability: An Analysis of the Turkish Banking System

Author

Listed:
  • 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)

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.

Suggested Citation

  • Ömer Ýskenderoglu & Serpil Tomak, 2013. "Competition and Stability: An Analysis of the Turkish Banking System," International Journal of Economics and Financial Issues, Econjournals, vol. 3(3), pages 752-762.
  • Handle: RePEc:eco:journ1:2013-03-18
    as

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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Haytem Ahmed Troug & Rashid Sbia, 2015. "The Relationship between Banking Competition and Stability in Developing Countries: The Case of Libya," International Journal of Economics and Financial Issues, Econjournals, vol. 5(3), pages 772-779.
    2. Elona Dushku, 2016. "Bank Risk-Taking and Competition in the Albanian Banking Sector," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 14(2), pages 187-203.
    3. Mustafa Mete & Mehmet Akif Destek, 2016. "An Empirical Research on Fragile Eight Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 782-785.

    More about this item

    Keywords

    Competition; banking stability; financial system fragility;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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