Foreign bank presencs and domestic bank performance in Turkish banking system

Bu çalısmada Türk bankacılık sisteminde yabancı banka mevcudiyetinin yerel bankaların performansı üzerindeki etkisi arastırılmıstır. 2004-2007 dönemine iliskin 13 adet mevduat bankasına ait veriler kullanılarak yapılan analizin bulguları yabancı banka mevcudiyetine bağlı olarak yerel bankaların faiz spredleri, faiz dısı gelirleri ve genel yönetim giderlerinin farklılastığını gösterirken, karlılık ve olağanüstü karsılıklarda bir farklılasma gözlenmemistir. Bir bütün olarak değerlendirildiğinde çalısmada Türk bankacılık sisteminde yabancı banka mevcudiyetinin sistemde rekabeti etkilediği yönünde bazı kanıtlara ulasılsa da bu rekabetin karlılık ve risk alma konusunda yerel bankalar üzerindeki etkisi önemsizdir.

Türk bankacılık sisteminde yabancı banka mevcudiyeti ve yerel bankaların performansı

This study investigates the effect of the foreign bank presence on the performance of domestic banks in the Turkish Banking System. The findings of the study that has been conducted in the period 2004-2007, using the data of 13 deposit banks, have shown that interest spreads; non-interest incomes and overhead costs of domestic banks vary depending on the foreign bank presence; however no significant differences have been observed in terms of profitability and loan loss provisions. When evaluated together, even though the study has displayed some evidence on the effects of the foreign bank presence on the competition in Turkish Banking System, its effects on domestic banks can be considered negligible in terms of profitability and risk taking.

PDF

___

Afsar, M., 2004, "Doğrudan Yabancı Yatırımlar ve Bankacılık Sektörü", Ege Akademik Bakıs Dergisi, Cilt 4, Sayı 1-2, Ocak-Temmuz 2004, pp. 85- 101, Online at http://eab.ege.edu.tr/pdf/4/C4-S1-2- %20M9.pdf
Akgüç, Ö., 2007, “Türkiye'de Yabancı Bankalar”, Muhasebe ve Finansman Dergisi, Sayı: 36, pp. 6-17.
Banks Association of Turkey, Banks in Turkey, Annual Publications 1995- 2007.
Bayraktar, N. and W. Yan, 2005, "Foreign Bank Entry and Domestic Banks' Performance: Evidence Using Bank-Level Data", mimeo, November 2005, online at http://www.personal.psu.edu/nxb23/ papers/other/Bayraktar-Wang-Oct12- 05.pdf
Beck, T., A. Demirguc-Kunt and R. Levine, 2000, “A New Database on the Structure and Development of the Financial Sector”, World Bank Economic Review, 14, 3, pp. 597-605.
Claessens, S., A. Demirguc-Kunt and H. Huizinga, 2001, "How Does Foreign Entry Affect Domestic Banking Markets?", Journal of Banking and Finance, 25 (5), pp. 891- 911.
Claessens, S., A. Demirguc-Kunt and H. Huizinga, 1998, "How Does Foreign Bank Entry Affect The Domestic Bank Market?", mimeo, World Bank.
Claessens, S., N. Van Horen, T. Gurcanlar and J. Mercado, 2008, "Foreign Bank Presence in Developing Countries 1995-2006: Data and Trends", March 2008, online at http://papers.ssrn.com/sol3/papers.cfm?a bstract_id=1107295
Denizer, C., 2000, "Foreign Entry in Turkey's Banking Sector, 1980-97", World Bank Policy Research Working Paper, No: 2462.
Denizer, C., 1997, "The Effects of Financial Liberalization and New Bank Entry on Market Structure and Competition in Turkey”, World Bank Working Paper, No: 1839.
Halıcıoğlu, F. (2008) "Foreign Direct Investments and Turkey", MPRA Paper, No. 10404, online at http://mpra.ub.unimuenchen. de/10404/
Hermes, N. and R. Lensink, 2004a, "Foreign Bank Presence, Domestic Bank Performance and Financial Development", Journal of Emerging Market Finance, 3, 2. pp. 207-229.
Hermes, N. and R. Lensink, 2004b, "The short-term effects of foreign bank entry on domestic bank behaviour: Does economic development matter?", Journal of Banking and Finance, 28, 3, pp. 553-568
Hermes, N. and R. Lensink, 2001, "The Impact of Foreign Bank Entry on Domestic Banking Markets: A Note", Research Report 01E62, University of Groningen, Research Institute SOM (Systems, Organizations and Management), Online at http://som.eldoc.ub.rug.nl/FILES/reports /themeE/2001/ 01E62/01e62.pdf
Micco, A., U. Panizza and M. Yañez, 2004, "Bank Ownership and Performance" Inter-American Development Bank, Research Department Working Papers, Washington, No: 518
Schäfer, D. and O. Talavera, 2007, “The Impact of Foreign Banks Entry on Domestic Banks' Profitability in a Transition Economy”, February 15, 2007, Online at https:// editorialexpress.com/cgibin/ conference/download.cgi?db_ name=pej2007&paper_id=27
Uiboupin, J., 2004, "Effects of Foreign Banks Entry on Bank Performance in the CEE Countries", Working Paper, No. 33-2004. University of Tartu Faculty of Economics and Business Administration.
Undersecretariat of Turkish Treasury, Bulletin and Statistics After Law no. 4875, Online at http://www.treasury.gov.tr/ irj/portal/anonymous?NavigationTarget= navurl://49ec0c6b3745caddfbdf2fd9d4e 04fa8&LightDTNKnobID=- 1398225765
Unite, A. and M. Sullivan, 2001, "The Impact of Liberalization of Foreign Bank Entry on the Philippine Domestic Banking Market" PASCN Discussion Paper, No. 2001-08
World Bank, Global Development Finance: The Role of International Banking, Washington, DC., 2008.