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Effect of Banking Regulation on Performance: Evidence from Turkey

Year: 2014

Type: article

Abstract: In this study, we investigate the effect of regulation on banking sector performance in an emerging country context. Consecutive crises in the early 2000s led to three waves of reformist banking regulations in Turkey: (1) the banking sector restructuring program in 2002, (2) limitation of the full deposit insurance system in 2004, and (3) a corporate governance-related banking law in 2005. Results show that these actions had a positive effect on bank lending, asset quality, and profitability. Findings also support the view that the sequence and timing of banking reforms in Turkey acted as a shield against the global financial crisis of 2008.

Source: Emerging Markets Finance and Trade

DOI: 10.2753/ree1540-496x500412

Authors: Serdar Ozkan, Cagnur Kaytmaz Balsari, Secil Varan

Institutions: İzmir University of Economics, Dokuz Eylül University

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W1978139878

FWCI: 5.271

Cites: 28

Cited by: 22

Related to: 10