Tanyeri B.2016-02-082016-02-0820090920-8550http://hdl.handle.net/11693/22867This paper investigates how changes in regulatory and economic environments affect the transparency of banks' financial-statements. Reregulation and a volatile economy make Turkish banks the ideal sample. I disaggregate sources of both hidden and booked capital in Turkish banks traded on the Istanbul Stock Exchange between 1988 and 2006. Hidden capital account for the difference between the accounting and opportunity-cost measures of a firm's net worth. Increases in hidden capital in crisis periods indicate a greater reliance on government-contributed safety-net capital. The increase in hidden capital is more pronounced for large banks. Too-Big-To-Fail policies may explain why large banks are the beneficiaries of government-contributed capital.EnglishFinancial safety netTransparencyTurkish financial crisisArticle10.1007/s10693-009-0064-9