The effect of market power on bank risk taking in Turkey
Elmas Yaldiz, Interdepartmental Centre for Research Training in Economics and Management,University of Trento, Trento, Italy Flavio Bazzana, Department of Computer and Management Sciences, University of Trento, Trento, Italy Abstract The aim of this paper is to understand the role of market power on the loan risk and overall bank risk measures for Turkish banks during 2001-2009. Testing for this question is particularly important for the Turkish banking system, which experienced an intense regulation process after 2000 leading to a significant decrease in the number of banks and thereby possibly reducing competition. The results of the study provide some evidence regarding the competition-stability hypothesis.
Keywords: competition, banking
Year: 2010 | Volume: 34 | Issue: 3 | Pages: 297 - 314
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