IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v49y2013is5p41-58.html
   My bibliography  Save this article

Demand and Competition Analysis in the Turkish Deposit and Credit Markets

Author

Listed:
  • G. Gulsun Akin
  • Ahmet Faruk Aysan
  • Sebnem Ileri
  • Levent Yildiran

Abstract

By estimating discrete choice multinomial logit demand models, we unveil consumer preferences in the Turkish deposit and credit markets in the 2002-9 period. We find that consumers prefer banks with larger networks and more efficient technologies in both markets. Borrowers are very responsive to interest rates, but depositors are not. We conclude that monopolistic competition prevails in both markets. However, banks' market power in the credit market is much lower than in the deposit market. Moreover, the comparison of demand elasticities in these two markets shows that credits will respond more than deposits to the taxes imposed on them, suggesting that loan provisions can be more effective than reserve requirements as a macroprudential policy tool to restrict credit growth.

Suggested Citation

  • G. Gulsun Akin & Ahmet Faruk Aysan & Sebnem Ileri & Levent Yildiran, 2013. "Demand and Competition Analysis in the Turkish Deposit and Credit Markets," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 49(S5), pages 41-58, November.
    • Handle: RePEc:mes:emfitr:v:49:y:2013:i:s5:p:41-58
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C3175R58H5858377
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Canan Yildirim & Adnan Kasman, 2015. "Bank Market Power and Non-Interest Income in Emerging Markets," Working Papers 930, Economic Research Forum, revised Jul 2015.
    2. G. Gulsun Akin & Ahmet Faruk Aysan & Ezgi Özer & Levent Yildiran, 2018. "Consumer Preferences and Market Structure in Credit Card Markets: Evidence from Turkey," Working Papers 1258, Economic Research Forum, revised 19 Nov 2018.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:49:y:2013:i:s5:p:41-58. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.