International Conference on Eurasian Economies
29-31 August 2016 – Kaposvár, HUNGARY
Paper detail
Paper ID : 1700
Status : Paper published
Language : Turkish
Topic : Macroeconomics
Presenter: Asst. Prof. Dr. Fatma Gündoğdu Odabaşıoğlu
Session : 2D Finans II
An Assessment on Financial Markets: European Union Member Country Hungary and Candidate Country Turkey
Finansal Piyasalara İlişkin Bir Değerlendirme: Avrupa Birliğine Üye Ülke Macaristan ve Aday Ülke Türkiye
- Asst. Prof. Dr. Fatma Gündoğdu Odabaşıoğlu (Atatürk University, Türkiye)
Abstract
With the end of cold war, Central and Eastern European countries who had not participated in the integration of Europe, have applied to become members of European Union. Hungary, a Central European country; applied for membership on December 16, 1991, started full membership negotiations in 1998 and joined the Union on May 1, 2004. Turkey on the other hand, was granted candidacy status during Helsinki European Council Summit Meeting of December 1999, after a 40 years long relationship that started with Turkey’s application to join European Economic Community on July 31, 1959. Negotiations for full membership of Turkey were finally started on October 3, 2005 and country entered a new era to adapt EU Acquis. Within this context, this study aims to compare financial markets of EU member state Hungary and candidate state Turkey for the period of 1998 - 2015; to evaluate risks and fragilities related to financial development levels and stability of banking sectors for both countries based on generally accepted financial indicators. In conclusion; Hungary was observed to have significantly less developed capital market compared Turkey over the years, despite having similar ratios in financial deepening during recent years. Findings of this assessment point out an increasing credit risk for banking sector of Hungary, enhanced by the economic crisis of 2008. In comparison, credit risk in banking sector of Turkey has been decreasing over the years. High credit/deposit ratio, is a sign of degradation and can be observed in Hungary's balance sheets, raised for Turkey as well.
JEL codes: E44
Gündoğdu Odabaşıoğlu, Fatma (2016). "An Assessment on Financial Markets: European Union Member Country Hungary and Candidate Country Turkey" in Proceedings of International Conference of Eurasian Economies 2016, pp.614-623, Kaposvár, HUNGARY.
DOI: https://doi.org/10.36880/C07.01700
