Performance characteristics of private and state-owned banks: the Turkish case
Date
1996Source Title
Managerial Finance
Print ISSN
0307-4358
Electronic ISSN
1758-7743
Publisher
Emerald
Volume
22
Issue
10
Pages
18 - 39
Language
English
Type
ArticleItem Usage Stats
118
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105
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Abstract
This paper investigates the performance characteristics of Turkish private and state-owned
commercial banks for the 1986- 1990 period. The link between interest margins and
maturity structures of bank asset and liabilities is specified. Empirical evidence indicates
that banks with longer positions experienced lower interest margins, a finding consistent
with the presence of a downward sloping yield curve during most of this period. The results
document that bank margins suffered after the financial reforms of 1988. Further,
compared to private banks, state-owned banks exhibited lower interest margins and longer
maturities, which is a direct consequence of portfolio constraints and management style
of banks.