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Bank Competition and Outreach: Evidence from Turkey

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  • A. FARUK AYSAN
  • M. DISLI
  • K. SCHOORS

Abstract

In light of the importance of banking sector outreach and given concerns that competition may adversely affect it, this study explores the empirical linkage between banking structure and outreach in Turkey for the period 1988–2010. Bank-, province-, and bank-province-level estimation results indicate that competition is in general conducive to the outreach of banks. We do not find evidence for collusive behavior between banks when they have multimarket contact. On the province-level, thepresence of foreign owned banks is associated with higher outreach, while at the bank-province levelwe observe that outreach of domestic banks exceeds that of foreign banks. Together, these results suggest that there are pro-competitive spillover effects from foreign banks to their domestic counterparts.

Suggested Citation

  • A. Faruk Aysan & M. Disli & K. Schoors, 2013. "Bank Competition and Outreach: Evidence from Turkey," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/839, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:13/839
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    4. Alberto Delgado, José Luis & Demirbaş, Dilek & Aysan, Ahmet Faruk, 2022. "Old But Resilient Story: Impact Of Decentralization On Social Welfare," MPRA Paper 115432, University Library of Munich, Germany.

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    More about this item

    Keywords

    bank competition; multimarket contact; bank outreach.;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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