8 research outputs found
Essays on market discipline in emerging markets
Ankara : The Department of Management, the Institute of Economics and Social Sciences of Bilkent University, 2007.Thesis (Ph.D.) -- Bilkent University, 2007.Includes bibliographical references leaves 127-134.In the aftermath of major crises, most emerging markets improved their banking
industries according to Basel-II requirements, which emphasize the role of
market discipline, supervision and capital adequacy in controlling risk-taking by
banks. After the 1998 crisis in the Russian Federation and the 2001 crisis in
Turkey, Central Bank of Russia and Banking Regulation and Supervision Agency
of Turkey restructured and consolidated the banking industries in both of the countries.
In the restructured banking environment, market discipline could be used as
a complementary mechanism for improved supervision of banking systems. First
two essays of this thesis elaborate on depositor discipline in the Russian Federation
and Turkey. Findings provide evidence that in the Russian Federation, depositors
allocate funds in well-capitalized and liquid banks. Similarly after the crisis, depositors
in Turkey prefer well-capitalized banks that have favorable asset quality.
Although banks in Turkey operate more efficiently, due to excessive guarantees,
depositors do not monitor banks’ risk taking behavior particularly before restructuring.
In the third essay, the role of different types of shareholders in disciplining
listed banks in Turkey is studied. While diversified shareholders are interested in
profitability, owner-managers are concerned with capital adequacy, liquidity and
efficiency of the banks. In addition, owner-managers are found to have some influence
on bank management to reduce risk-taking. In particular, small banks take
measures to increase the capital ratio while decreasing non-performing loans as a
result of an increase in shareholders’ asset risk assessments.Ungan, Ayşe EcePh.D
Transition to Market-Based Discipline of Banks: A Comparative Analysis of Russian Federation and Turkey
Depositors’ Assessment of Bank Riskiness in the Russian Federation
Market discipline, bank risk, emerging markets, Russian Federation, G20, G21,