Foreign Bank Presence and Bank Spreads: Evidence from Turkey

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Title:Foreign Bank Presence and Bank Spreads: Evidence from Turkey
Creators:
Yalcinkaya Koyuncu, Julide
Journal or Publication Title:
AUCO Czech Economic Review, 5, 1, pp. 64-76
Uncontrolled Keywords:Foreign banks, Turkey, emerging markets

Abstract

Using bank-level data for Turkey, this paper examines whether foreign banks are able to operate with lower spreads and whether the overall level of foreign bank participation in the banking system lowers spreads among domestic banks. Empirical analysis yields that foreign banks are able to charge lower spreads than domestic banks in Turkey. However, findings indicate that the overall level of foreign bank participation in the Turkish banking system does not ffect spreads of domestic banks directly. Instead, the overall level of foreign bank participation in the banking system affects the spreads indirectly through its effects on overhead expenses. Overhead expenses of all banks decrease as foreign bank participation increases.

Official URL: http://www.ceeol.com/aspx/issuedetails.aspx?issueid=57B5F853-06A7-48F2-B60F-167EA4E75E73&articleid=9B6EBC3F-FF7B-4EDF-A291-C61D7EB73A9A

Title:Foreign Bank Presence and Bank Spreads: Evidence from Turkey
Creators:
Yalcinkaya Koyuncu, Julide
Uncontrolled Keywords:Foreign banks, Turkey, emerging markets
Subjects:H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
H Social Sciences > HF Commerce
Divisions:Section of external journals > AUCO Czech Economic Review
Journal or Publication Title:AUCO Czech Economic Review
Volume:5
Number:1
Page Range:pp. 64-76
ISSN:1802-4696
Publisher:Charles University
Related URLs:
URLURL Type
http://auco.cuni.czPublisher
http://avi.lib.cas.cz/node/183Publisher
ID Code:6518
Item Type:Article
Deposited On:05 Apr 2011 17:05
Last Modified:05 Apr 2011 15:05

Citation

Yalcinkaya Koyuncu, Julide (2011) Foreign Bank Presence and Bank Spreads: Evidence from Turkey. AUCO Czech Economic Review, 5 (1). pp. 64-76. ISSN 1802-4696

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