This week's speaker is Belma Ozturkkal from Kadir Has University giving a talk entitled
Election cycles, bank ownership, loans in an emerging market: Turkey
Abstract | This is a study investigating the impact of political influences at times of election periods after the major financial crisis and implemented banking reforms of year 2001 for the special case of same governing party since 2002 in Turkey. Different banking data sets of state, private and foreign owned banks are used in three dimensions: individual bank indicators, regional and national election cycles and vote differences, macroeconomic developments (annual and quarterly data between 2000 and 2018). Empirical results demonstrate bank ownership differences where total bank loans decrease at times of parliamentary election, hence if the bank is state-owned loans increase at elections. Tourism loans increase at times of parliamentary election and total loans, agricultural loans increase at regional election periods. If the difference between the main party and the opposing party votes of the city increases at regional elections, tourism and real estate sector loans decrease, whereas the agricultural sector loans increase as a possible sign of preferential treatment. Deposits decrease at times of presidential election. Crisis periods and macroeconomic factors influence assets and loans significantly as hypothesized.
The Brown Bag Lunch is a weekly series where professors and doctoral students present their ongoing research. For more information, please contact Xiaojing Zhou.