IDEAS home Printed from https://ideas.repec.org/a/eme/imefpp/v3y2010i4p351-362.html
   My bibliography  Save this article

Turkish banking system in the face of the global crisis

Author

Listed:
  • M. Sükrü Erdem

Abstract

Purpose - The 2008-2009 crisis had no significant impact on the Turkish banking system (TBS), with the TBS achieving a record level of profitability in 2009. The strong position of Turkish banks against the global crisis is attributed generally to the good regulation and risk management in the TBS. The measures implemented by The Turkish Central Bank, and The Banking Regulation and Supervision Agency, e.g. high capital adequacy ratio, played a significant role. But, this judgment does not take into consideration the high profitability and some inefficiency of TBS in his role of financial intermediation. The purpose of this paper is to analyze the TBS's performance in the face of the global crisis. Design/methodology/approach - The paper compare the measures against the global crisis and the performances of banking systems by public supports to financial sector, measures taken Findings - The paper explains that the performance of TBS against the crisis is, to some extent, due to the high profitability and low efficiency in financial intermediation. Practical implications - Financial regulation and policy particularly in emerging or underdeveloped economies should find equilibrium between the soundness and efficiency of banking system. Originality/value - In full financial crisis the majority of scientific work focuses on the prudential regulation of the banking system and the problem of moral hazard. In fact, countries such as Turkey are still far from having the same problems and concerns. The paper shows that in spite of the global crisis, the TBS continued to obtain very raised profits: it can be said that the banking system soundness improved with the detriment the non-financial sector.

Suggested Citation

  • M. Sükrü Erdem, 2010. "Turkish banking system in the face of the global crisis," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing, vol. 3(4), pages 351-362, November.
  • Handle: RePEc:eme:imefpp:v:3:y:2010:i:4:p:351-362
    as

    Download full text from publisher

    File URL: http://www.emeraldinsight.com/10.1108/17538391011093289?utm_campaign=RePEc&WT.mc_id=RePEc
    Download Restriction: Access to full text is restricted to subscribers

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. George A. Akerlof, 2009. "How Human Psychology Drives the Economy and Why It Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1175-1175.
    2. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters,in: This Time Is Different: Eight Centuries of Financial Folly Princeton University Press.
    3. Reinhart, Karmen & Rogoff, Kenneth, 2009. ""This time is different": panorama of eight centuries of financial crises," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 77-114, March.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:imefpp:v:3:y:2010:i:4:p:351-362. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman). General contact details of provider: http://www.emeraldinsight.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.