Which firms engage small, foreign, or state banks? And who goes Islamic? Evidence from Turkey

Ongena S., Şendeniz-Yüncü I.

JOURNAL OF BANKING & FINANCE, cilt.35, sa.12, ss.3213-3224, 2011 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 35 Sayı: 12
  • Basım Tarihi: 2011
  • Doi Numarası: 10.1016/j.jbankfin.2011.05.001
  • Dergi Adı: JOURNAL OF BANKING & FINANCE
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.3213-3224
  • Anahtar Kelimeler: Islamic banking, Turkey, Lending relationships, GOVERNMENT OWNERSHIP, CHOICE, MULTIPLE, MARKETS, IMPACT, SIZE, LAW
  • Orta Doğu Teknik Üniversitesi Adresli: Hayır

Özet

We study a representative dataset from Turkey that identifies firm-bank connections. Banks in Turkey differ not only in size and nationality, but also in ownership and orientation (non-Islamic versus Islamic)-resulting in at least six distinct bank types. We estimate a multinomial logit of the choice by the firm of bank type. We document a strong correspondence between bank type and firm characteristics that is not always the same as has been documented so far for US datasets. For example, small firms engage large rather than small banks. Young, large, multiple-bank, and industry-diversified firms, that are located in or close to Istanbul, team up with foreign banks. Islamic banks mainly deal with young, multiple-bank, industry-focused and transparent firms. (C) 2011 Elsevier B.V. All rights reserved.