File(s) under embargo

Reason: Publisher requirement.

9

month(s)

9

day(s)

until file(s) become available

Do financial reforms always improve banks efficiency and competition? A long-term analysis of Turkey’s experience

journal contribution
posted on 08.12.2021, 14:42 by Nuri Altintas, Alessandra FerrariAlessandra Ferrari, Claudia Girardone
Financial policy changes are aimed at improving banks efficiency and competition; however their effectiveness in the context of emerging economies is far from obvious. Using Turkey as a case study, we create a unique data set and analyse the impact of almost 30 years of financial policy changes on the cost efficiency and competitiveness of its banks. We estimate a stochastic cost frontier with inefficiency determinants, then rely on two complementary approaches for the measurement of competition: a novel implementation of the Boone model, and the Persistency of Profits (POP) model. We find that deregulation does not bring the expected benefits, and performance starts improving only after the introduction of prudential re-regulation policies. The entry of foreign banks helps technological progress, competition and efficiency improvements, and all banks eventually reach similar efficiency levels.

History

School

  • Business and Economics

Department

  • Economics

Published in

Journal of Banking Regulation

Publisher

Palgrave Macmillan (part of Springer Nature)

Version

AM (Accepted Manuscript)

Rights holder

© The Author(s), under exclusive licence to Springer Nature Limited

Publisher statement

This is a post-peer-review, pre-copyedit version of an article published in Journal of Banking Regulation. The definitive publisher-authenticated version ALTINTAS, N., FERRARI, A. and GIRARDONE, C., 2021. Do financial reforms always improve banks efficiency and competition? A long-term analysis of Turkey’s experience. Journal of Banking Regulation, doi:10.1057/s41261-021-00182-0 is available online at: https://doi.org/10.1057/s41261-021-00182-0

Acceptance date

17/10/2021

Publication date

2021-10-29

Copyright date

2021

ISSN

1745-6452

eISSN

1750-2071

Language

en

Depositor

Dr Alessandra Ferrari. Deposit date: 24 October 2021