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A LESSON LEARNED? PRE‐ AND POSTCRISIS ENTRY DECISIONS IN TURKISH BANKING
Author(s) -
DAMAR H. EVREN
Publication year - 2009
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2008.00118.x
Subject(s) - turkish , restructuring , diversification (marketing strategy) , logit , dominance (genetics) , spillover effect , monetary economics , economics , business , international economics , macroeconomics , finance , econometrics , marketing , philosophy , linguistics , biochemistry , chemistry , gene
This study looks at the determinants of entry by Turkish banks into local markets during the periods before and after the crisis of 2000–2001. Motivated by a theoretical model of entry, results of fixed‐effects logit regressions suggest that there has been a change in the geographical diversification strategies of Turkish banks. It appears that the dominance of strategic concerns, such as competing with banks of similar size, has diminished, while economic concerns, such as incumbent characteristics and cost considerations, have become more important. Overall, the postcrisis restructuring policies seem to have led to improved decision making in the sector. ( JEL G21, L22, R30)