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Competition and Collusion in the Turkish Banking Industry

Author

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  • Resul Aydemir

Abstract

I consider the Turkish banking industry, which is dominated by a few large banks, and taking up a conjectural variation approach, I estimate a structural model to examine the market conduct of the largest banks for the period 1988-2009. The estimation results suggest that Turkish banks colluded in the loan market during the sample period. This evidence demonstrates that there is a conflict between market concentration and competition in the Turkish banking industry. Thus, in order to protect competition, regulatory agencies should be cautious of efforts that may increase concentration in the banking industry.

Suggested Citation

  • Resul Aydemir, 2013. "Competition and Collusion in the Turkish Banking Industry," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 49(S5), pages 31-40, November.
  • Handle: RePEc:mes:emfitr:v:49:y:2013:i:s5:p:31-40
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    Citations

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    Cited by:

    1. Nuri Altintas & Alessandra Ferrari & Claudia Girardone, 2022. "Do financial reforms always improve banks efficiency and competition? A long-term analysis of Turkey’s experience," Journal of Banking Regulation, Palgrave Macmillan, vol. 23(4), pages 458-469, December.
    2. Aydemir, Resul & Guloglu, Bulent, 2017. "How do banks determine their spreads under credit and liquidity risks during business cycles?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 46(C), pages 147-157.
    3. Aydemir, Resul & Ovenc, Gokhan, 2016. "Interest rates, the yield curve and bank profitability in an emerging market economy," Economic Systems, Elsevier, vol. 40(4), pages 670-682.
    4. Aydın ÇELEN, 2019. "Anticompetitive Effects of the Banking Cartel in Turkish Loan MarketAbstract: The aim of this paper is to measure the effect of the banking cartel on the competition in the Turkish loan market. In doi," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(40).

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