After 1980 the Increase of Foreign Capital Banks in the Turkish Banking System by Ownership Structure and Its Effects on the Financial Performance of the Sector


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DENIZ M., HACIOĞLU A.

İnsan ve Toplum Bilimleri Araştırmaları Dergisi, cilt.12, sa.1, ss.233-256, 2023 (Hakemli Dergi) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 12 Sayı: 1
  • Basım Tarihi: 2023
  • Doi Numarası: 10.15869/itobiad.1232361
  • Dergi Adı: İnsan ve Toplum Bilimleri Araştırmaları Dergisi
  • Derginin Tarandığı İndeksler: ERIC (Education Resources Information Center), Index Islamicus, MLA - Modern Language Association Database, TR DİZİN (ULAKBİM)
  • Sayfa Sayıları: ss.233-256
  • İstanbul Üniversitesi Adresli: Evet

Özet

In the climate of rapid transformation in the Turkish economy and integration with global economies, new players have emerged in many sectors. For the last decades, the general economic outlook has begun to diversify and become an economy in which not only domestic companies but also foreign capital companies operate. Especially after 1980, policies involving financial liberalization have increased foreign capital inflows into the banking sector of Turkish economy over time. In this context, the ownership status of most of the national private banks has changed by mergers and acquisitions. Also, there is a rapid increase in the number of new foreign banks which were established and started to operate across the sector. The aim of this study is to search the effects of foreign capital inflow into Turkish banking sector for the last decades. For this reason in the first place, a general information has been given about the economic policies and the change in the financial system in Turkey since 1980. After that, a variety of performance measurements have been examined in this study. Namely, apart from the public banks, state-owned commercial banks, privately-owned commercial banks and the banks owned by foreign capital in Turkey have been taken in to consideration and the selected ratios/indicators of the relevant banks have been compared with the sector averages. The observations and comparisons have been made mainly on a period of last ten years, between 2009-2019. While the reasons that attract multinational companies and foreign capital banks to the Turkish economy and the effects of the increase in the number of foreign capital banks in the sector are discussed, the financial performances of foreign banks are examined by comparing them with the performances of other public and private banks