Parliamentary Election Cycles and the Turkish Banking Sector
This paper analyzes the effects of parliamentary election cycles on the Turkish banking system. Using annual bank-level data representing all banks in Turkey during 1963-2007, we find that there are meaningful differences in the structure of assets, liabilities and financial performance across different stages of the parliamentary election cycle. However, we find that government-owned banks operate similarly to both domestic and foreign-owned private sector banks before, during and after elections. Our estimates also show that government-owned banks underperform their domestic and foreign-owned private sector counterparts.
|Date of creation:||12 Feb 2009|
|Date of revision:||14 May 2010|
|Publication status:||published, Journal of Banking and Finance, 34, 2709-2719, 2010.|
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