Turkish Banking: Banking Under Political Instability and Chronic High Inflation (Palgrave Macmillan Studies in Banking and Financial Institutions)

Cover......Page 0
Contents......Page 5
List of Figures and Tables......Page 9
Preface......Page 14
List of Abbreviations......Page 16
About the Authors......Page 18
1 Introduction......Page 21
The Ottoman period and the early Republic......Page 27
Liberalization in the 1950s......Page 30
Import substitution and inward-orientated growth strategy, 1960–79......Page 32
1980–90......Page 35
1990–2000......Page 39
1994 economic crises......Page 41
2000–01 twin economic crises......Page 44
Recent economic trends......Page 47
Renewal of the standby agreement with the IMF, 2005......Page 50
A short history of political instability......Page 51
Conclusion......Page 57
Appendix 2.1......Page 58
Appendix 2.2......Page 59
Introduction......Page 60
Banking in the Ottoman period......Page 61
The new Republic and the establishment of the new national banks......Page 62
The period of state-owned banks, 1932–45......Page 63
Establishment of private banks, 1945–60......Page 64
Banking in the planned economy, 1960–79......Page 65
Banking after financial liberalization......Page 67
Banking and financial markets in the 1990s......Page 70
Aftermath of the 1994 crisis......Page 74
Establishment of the Banking Regulation and Supervisory Agency......Page 75
Recent developments, 2000–06......Page 77
SDIF and the restructuring process......Page 78
Recovery......Page 80
Dollarization, crowding-out by government debt and maturity mismatch......Page 82
Conclusion......Page 84
Appendix 3.1......Page 86
Appendix 3.2......Page 88
Size of the Turkish banking sector......Page 89
Branch systems of the Turkish banking sector......Page 93
Employment in the Turkish banking sector......Page 94
Big banks......Page 97
State-owned versus privately-owned banks in Turkey......Page 98
Assets structure, loans and liquid assets......Page 99
Liability structure, deposits and equity......Page 106
Income structure of Turkish banks......Page 107
Cost structure of Turkish banks......Page 109
Performance of the Turkish banking sector......Page 110
Capital adequacy......Page 111
Asset quality......Page 112
Profitability......Page 113
Financial strength indices......Page 115
Conclusion......Page 116
Introduction......Page 117
A brief literature review: financial development and economic growth......Page 118
Data and methodology......Page 122
Economic growth and financial development indicators......Page 123
Correlation matrices......Page 125
Regression results......Page 126
Conclusion......Page 129
Introduction......Page 131
Fundamentals of efficiency and productivity......Page 132
Data sources......Page 135
Data envelopment analysis (DEA) method......Page 138
Tobit regression: accounting for environmental variables......Page 142
Nonparametric productivity measurement of Turkish banks......Page 143
DEA–Malmquist index technique......Page 147
Technical efficiency scores of Turkish banks......Page 149
Productivity scores of Turkish banks......Page 154
Conclusion......Page 160
Appendix 6.1......Page 163
Appendix 6.2......Page 164
Appendix 6.3......Page 170
The stock market in Turkey......Page 171
Initial public offerings (IPOs)......Page 177
Primary markets in Turkey......Page 180
Over-the-counter market......Page 181
ISE bonds and bills market......Page 182
Leasing, factoring and consumer finance companies in Turkey......Page 184
Special financial institutions......Page 186
Conclusion......Page 187
Reshaping the Turkish financial system towards potential EU membership......Page 189
Implementation of Basel II in Turkey......Page 193
Pillars 2 and 3......Page 194
Can Turkish banks cope with Basel II?......Page 195
Introduction of a mortgage system and a new mortgage law......Page 196
Foreign direct investment in Turkish banking......Page 199
Conclusion......Page 204
Appendix 8.1......Page 206
9 Concluding Remarks......Page 211
Notes......Page 215
References......Page 218
B......Page 230
D......Page 231
F......Page 232
I......Page 233
N......Page 234
R......Page 235
T......Page 236
Z......Page 237