Parliamentary election cycles and the Turkish banking sector

This paper analyzes the effects of parliamentary election cycles on the Turkish banking system. Using annual bank-level data representing all banks in Turkey during 1963–2007, we present evidence of meaningful differences in the structure of bank assets, liabilities and financial performance across...

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Bibliographic Details
Published in:Journal of banking & finance 2010-11, Vol.34 (11), p.2709-2719
Main Authors: Baum, Christopher F., Caglayan, Mustafa, Talavera, Oleksandr
Format: Article
Language:English
Subjects:
Baking industry
Bank assets
Bank liabilities
Banking
Banks
Capital market
Domestic banks
Elections
Elections State banks Domestic banks Foreign-owned banks Loans Interest rate margin
Financial institutions
Financial performance
Financial services
Foreign-owned banks
Impact analysis
Interest rate margin
Interest rates
Loans
Parliamentary elections
State banks
Studies
Turkey
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Summary:This paper analyzes the effects of parliamentary election cycles on the Turkish banking system. Using annual bank-level data representing all banks in Turkey during 1963–2007, we present evidence of meaningful differences in the structure of bank assets, liabilities and financial performance across different stages of the parliamentary election cycle. However, we find that government-owned banks’ behavior does not meaningfully differ from that of either domestic and foreign-owned private-sector banks before, during or after elections. Our estimates also show that government-owned banks underperform both domestic and foreign-owned private-sector counterparts.
ISSN:0378-4266
1872-6372
DOI:10.1016/j.jbankfin.2010.05.013