An examination of the role of foreign capital in the Turkish banking sector with discriminant analysis

Karabiyik A., GÖKMEN H.

International Research Journal of Finance and Economics, vol.86, pp.39-51, 2012 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 86
  • Publication Date: 2012
  • Journal Name: International Research Journal of Finance and Economics
  • Journal Indexes: Scopus, IBZ Online, EconLit, Index Islamicus
  • Page Numbers: pp.39-51
  • Keywords: Banks with Foreign Capital, Capital and ownership structure, Discriminant analysis, Foreign banks, Turkish banking sector
  • Dokuz Eylül University Affiliated: Yes

Abstract

The aim of this study is to determine the role and classification of foreign capital in the Turkish Banking Sector. In the aftermath of the global financial crisis, the demands of foreign investors to participate in the Turkish Banking Sector, which has been influenced by the crisis in the least possible degree, have increased both as shareholders and also as capitalists. Yet despite the advantages of foreign capital, the banks that are considered as "too big to fail" in the Turkish Banking Sector are mostly domestic banks due to the financial behaviour Turkish investors. In this study, it has been shown by means of financial ratios and discriminant analysis that the Turkish Banking Sector can be divided into three classes in terms of foreign capital ownership. © EuroJournals Publishing, Inc.