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Parliamentary Election Cycles and the Turkish Banking Sector

Author

Listed:
  • Christopher F. Baum

    (Boston College
    DIW Berlin)

  • Mustafa Caglayan

    (University of Sheffield)

  • Oleksandr Talavera

    (School of Economics, University of East Anglia)

Abstract

This paper analyzes the effects of parliamentary election cycles on the Turkish banking system. Using annual bank-level data representing all banks in Turkey during 1963-2005, we find that there are meaningful differences in the structure of assets, liabilities and financial performance across different stages of the parliamentary election cycle. However, we find that government-owned banks operate similarly to both domestic and foreign-owned private sector banks before, during and after elections. Our estimates also show that government-owned banks underperform their domestic and foreign-owned private sector counterparts.

Suggested Citation

  • Christopher F. Baum & Mustafa Caglayan & Oleksandr Talavera, 2010. "Parliamentary Election Cycles and the Turkish Banking Sector," University of East Anglia Applied and Financial Economics Working Paper Series 002, School of Economics, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:aepppr:2010_2
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    References listed on IDEAS

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    More about this item

    Keywords

    elections; state banks; domestic banks; foreign-owned banks; loans; interest rate margin;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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