Transformation of the financial structure in an emerging marketdue to financial liberalization: a case study for Turkey

Ongan T. H. , Akkay R. C. , Altaylıgil Y. B.

Banks and Banks Systems, no.7, pp.18-23, 2012 (Peer-Reviewed Journal)

  • Publication Type: Article / Article
  • Publication Date: 2012
  • Journal Name: Banks and Banks Systems
  • Journal Indexes: EconLit
  • Page Numbers: pp.18-23



The distinction between bank-based versus market-based financial system and its relationship with the economic 
growth has been a divisive issue in the last two decades. The authors suggest a new way to distinguish financial systems based on the idea “bank-biased” versus “market-biased” rather than “bank-based” versus “market-based” distinction. The empirical results of this paper illustrate a “market-biased” transformation of the Turkish financial system for 
the years 1987-2009. The main cause of this transformation is huge public debts and financial openness in the long run