Bank competition,concentration and financial stability in the Turkish banking industry |
| |
| Affiliation: | 1. Department of Economics and Business, Virginia Military Institute, Lexington, VA 24450, USA;2. Federal Reserve Bank of Minneapolis, USA;3. Department of Economics, The Williams School of Commerce, Economics, and Politics, Washington and Lee University, Lexington, VA 24450, USA;4. Federal Reserve Bank of Minneapolis, Community Development Department, USA;1. Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, Iasi, Romania;2. Faculty of Finance, Insurance, Banking and Stock Exchange, Bucharest University of Economic Studies, Bucharest, Romania;1. College of Business Administration, University of Dubai, Dubai, UAE;2. LAREQUAD, Tunis, Tunisia;3. Department of Statistics, Science Faculty, Yarmouk University, Irbid 21163, Jordan;1. Faculty of Economics, University of Rome III, Italy;2. Bangor Business School, Bangor University, UK;3. Business School, The University of Edinburgh, 29 Buccleuch Place, Edinburgh EH8 9JS, UK;1. College of Business and Economics, Department of Finance and Economics, Qatar University, Qatar;2. College of Business Administration, University of Sharjah, Sharjah, United Arab Emirates |
| |
| Abstract: | This paper analyzes the impact of competition and concentration on bank stability in the Turkish banking industry over the period 2002–2012. The Boone indicator and the efficiency-adjusted Lerner index are used as proxies for competition, while the non-performing loans (NPL) ratio and Z-scores are used as proxies for bank stability. The main results indicate that competition is negatively related to the NPL ratio but positively related to the Z-score. The results further indicate that greater concentration has a positive impact on the NPL and a negative impact on the Z-score. We also use a quadratic term of the competition measures to capture a possible non-linear relationship between competition and stability. The results show that the coefficient of the quadratic term is negative for the NPL model and positive for the Z-score model. Overall, our findings provide support for the competition-fragility view. |
| |
| Keywords: | Financial stability Bank competition Lerner index Boone indicator Turkish banking |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
