Parliamentary Election Cycles and the Turkish Banking Sector
Baum, Christopher, Mustafa Caglayan, and Oleksandr Talavera. “Parliamentary Election Cycles and the Turkish Banking Sector”. Boston College Working Papers in Economics 705, 2009.
This paper analyzes the effects of parliamentary election cycles on the Turkish banking system. Using annual bank-level data representing all banks in Turkey during 1963-2007, we find that there are meaningful differences in the structure of assets, liabilities and financial performance across different stages of the parliamentary election cycle. However, we find that government-owned banks operate similarly to both domestic and foreign-owned private sector banks before, during and after elections. Our estimates also show that government-owned banks underperform their domestic and foreign-owned private sector counterparts.