• About
  • Policies
  • What is open access
  • Library
  • Contact
Advanced search
      View Item 
      •   BUIR Home
      • University Library
      • Bilkent Theses
      • Theses - Department of Management
      • Dept. of Management - Master's degree
      • View Item
      •   BUIR Home
      • University Library
      • Bilkent Theses
      • Theses - Department of Management
      • Dept. of Management - Master's degree
      • View Item
      JavaScript is disabled for your browser. Some features of this site may not work without it.

      Does increasing foreign control in the banking sector have an impact on banks’ loan rates? : evidence from Turkey

      Thumbnail
      Embargo Lift Date: 2020-06-02
      View / Download
      627.8 Kb
      Author
      Topaloğlu Bozkurt, Ayça
      Advisor
      Özyıldırım, Süheyla
      Date
      2017-06
      Publisher
      Bilkent University
      Language
      English
      Type
      Thesis
      Item Usage Stats
      136
      views
      38
      downloads
      Abstract
      Foreign bank presence has been a growing trend in Turkey since 2000. Considering the fact that almost all of the entries are through acquisition of small-sized banks in the industry, we argue that this kind of a foreign entry to the Turkish banking sector may have little impact on the productivity or efficiency of the banking sector. We hypothesize that these banks have exercised very aggressive pricing strategies to benefit from growing loan demand for commercial loans, personal loans, vehicle and housing loans.Thus, in the thesis, we study the association between foreign bank presence and loan prices in the Turkish banking sector during the time period between December 2002 and September 2016. Different than previous studies, we use unique data, i.e., weighted average loan interest rates for commercial, personal, vehicle and housing loans of 19 deposit banks that was collected by Central Bank of the Republic of Turkey. Empirical results indicate that the foreign presence has a significant impact on the lending rates of Turkish banking sector regardless of the loan type. The impact is seen to be higher for large banks compared to small banks. We also find that the direction of the relation is varying among loan types. Particularly, there exist a negative relation between foreign presence and lending rates of commercial loans and a positive relation with vehicle and housing loans. Beyond a certain level of foreign presence, a competitive pricing in the credit market is found to reverse its direction suggesting regulatory agencies to monitor new foreign entries in Turkey.
      Keywords
      Bank Loan Rates
      Foreign Bank Presence
      Loan Types
      Panel Data Analysis
      Permalink
      http://hdl.handle.net/11693/33187
      Collections
      • Dept. of Management - Master's degree 295
      Show full item record

      Browse

      All of BUIRCommunities & CollectionsTitlesAuthorsAdvisorsBy Issue DateKeywordsTypeDepartmentsThis CollectionTitlesAuthorsAdvisorsBy Issue DateKeywordsTypeDepartments

      My Account

      Login

      Statistics

      View Usage StatisticsView Google Analytics Statistics

      Bilkent University

      If you have trouble accessing this page and need to request an alternate format, contact the site administrator. Phone: (312) 290 1771
      © Bilkent University - Library IT

      Contact Us | Send Feedback | Off-Campus Access | Admin | Privacy