Effect of Banking Regulation on Performance: Evidence from Turkey

Ozkan S., Balsarı Ç., Varan S.

EMERGING MARKETS FINANCE AND TRADE, cilt.50, sa.4, ss.196-211, 2014 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 50 Sayı: 4
  • Basım Tarihi: 2014
  • Doi Numarası: 10.2753/ree1540-496x500412
  • Dergi Adı: EMERGING MARKETS FINANCE AND TRADE
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.196-211
  • Anahtar Kelimeler: banking sector, corporate governance, financial crises, regulation, Turkey, CORPORATE GOVERNANCE, EFFICIENCY, OWNERSHIP, CRISIS, REFORM, IMPACT
  • Dokuz Eylül Üniversitesi Adresli: Evet

Özet

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.