International Conference on Eurasian Economies
11-13 October 2012 – Almaty, KAZAKHSTAN
Paper detail
Paper ID : 444
Status : Paper published
Language : English
Topic : Sectoral Analyses
Presenter: Asst. Prof. Dr. Resul Aydemir
Session : 4A Sectoral Analysis
Collusion in the Turkish Banking Sector
Collusion in the Turkish Banking Sector
- Asst. Prof. Dr. Resul Aydemir (Istanbul Technical University, Türkiye)
Abstract
In this paper, I consider the Turkish Banking Industry, which is dominated by a few large banks. Using a conjectural variation approach, I estimate a structural model to examine the market conduct of the largest banks for the period 1988-2009. Estimation results suggest that the Turkish banks colluded in the loan market during the sample period where the average mark-up is estimated to be in the range of 44% to 86% depending on the empirical specification. This evidence demonstrates a conflict between market concentration and competition in the Turkish banking industry. Thus, regulatory agencies should be cautious against attempts to increase concentration in the banking industry.
JEL codes: G21, L10
Aydemir, Resul (2012). "Collusion in the Turkish Banking Sector" in Proceedings of International Conference of Eurasian Economies 2012, pp.96-100, Almaty, KAZAKHSTAN.
DOI: https://doi.org/10.36880/C03.00444
