Structural Change and the Efficiency of Banking In Turkey: Does Ownership Matter?

In a period of increasing foreign bank entry, the popular question of “what does foreign bank entry bring to the Turkish banking sector?” can partly be answered with respect to the productivity effects. This paper aims to find the productivity change in the banking sector between 1990 and 2007 just before the global crisis. We are especially interested in the period beginning with 2001 after which the Turkish banking system has almost been flooded with foreign banks. Using a sample of 20 commercial banks, we attempt to find the Data Envelopment Analysis (DEA) type Malmquist Total Factor Productivity Change Index over the specified period. We also look at the source of this change decomposing this index into its mutually exclusive and exhaustive components of efficiency change and technological change. Additionally, we further decompose the technical efficiency change into pure technical efficiency change and scale efficiency change. The DEA results guide us in comparing the performances of banks of different ownership status (state, private and foreign banks) and of different sizeTurkish Banking Industry, Foreign Bank Entry, Globalization of Banking, Data Envelopment Analysis, Efficiency

Market Disciplining Role of Crisis on the Restructuring of the Turkish Banking Sector

This paper aims to find the productivity change in the banking sector between 1990 and 2006, with an emphasis to the period after 2001 crisis during which the Turkish banking system experienced a structural change. Using DEA, we find the Malmquist TFP Change Index and its mutually exclusive and exhaustive components of efficiency and technological changes over time. Additionally, we further decompose the technical efficiency change into pure technical and scale efficiency changes. The productivity of the banking sector is found out to have increased, the main reason being technological improvement rather than efficiency increase. For the cases of productivity decline, however, the changes come from the efficiency side rather than technology. An analysis with respect to the ownership status revealed that foreign banks were the most efficient group until 2001 after which state banks captured the first place. We attribute this change to the inflation accounting practice as well as better management of state banks with less political intrusion. The analysis with respect to bank size reveals that before 2000, the most efficient bank group was the medium-scale banks (the banks mainly purchased by foreign banks) followed by small banks while the efficiency scores converged after 2001.Turkish Banking Sector; Data Envelopment Analysis; Efficiency; Productivity; Post-Crises Period

Why Do Foreign Banks Invest In Turkey?

Sound macroeconomic policies, increasing global liquidity and higher real returns in developing countries played an important role in canalizing capital towards developing markets. Recent improvement in the developing Turkish economy brought the issue of foreign entry to the foreground. High growth potential backed by an increasing population, falling inflation rates and the birth of the mortgage sector made Turkey an ideal place to expand into. This article is not concerned about whether foreign entry is good nor does it discuss the subsequent effects. Rather, it attempts exclusively to shed light on the motivations behind entry to Turkey utilizing recent entry cases.Globalization of Banking; Turkish Banking Industry; Foreign Bank Entry

Globalization of Turkey’s Banking Sector: the Determinants of Foreign Bank Penetration in Turkey

Motivated by the increased importance of foreign bank entry, this paper takes a look at the issue from the perspective of both foreign entrants and the host country. What are the conditions that make the host country market attractive to foreign entrants? What changes in the home country motivate foreign banks to expand abroad? Attracted by the “pull” and “push” factors, foreign banks enter into the banking sector of the host country resulting in both benefits and costs to the domestic sector. Having given the reasons and the effects of foreign entry in a theoretical framework, this study attempts to find out any match of the theory with the evidence.Foreign Bank Entry; Internationalization of Banking

What Determines the Banking Sector Performance in Globalized Financial Markets: The Case of Turkey?

This study attempts to give an insight about the trend in the performance of the Turkish banking sector by conducting a panel data fixed effects regression analysis. The results reveal that efficiency change is negatively related to the number of branches. We find a positive relationship between loan ratio and the performance indices efficiency and efficiency change. Furthermore, bank capitalization is positively related to efficiency change. Interestingly however, return on equity is not statistically significant in explaining any of the efficiency measures. There is also no robust relationship between foreign ownership and efficiency. Finally, restructuring attempts in post-crises epoch robustly account for the improvement in efficiency scores in recent years.Panel Data Analysis; Efficiency; Productivity; Turkish Commercial Banks; Foreign Ownership

Interconnects for future technology generations - conventional CMOS with copper/low-k and beyond

The limitations of the conventional Cu/low-k interconnect technology for use in future ultra-scaled integrated circuits down to 7 nm in the year 2020 are investigated from the power/performance point of view. Compact models are used to demonstrate the impacts of various interconnect process parameters, for instance, the interconnect barrier/liner bilayer thickness and aspect ratio, on the design and optimization of a multilevel interconnect network. A framework to perform a sensitivity analysis for the circuit behavior to interconnect process parameters is created for future FinFET CMOS technology nodes. Multiple predictive cell libraries down to the 7‒nm technology node are constructed to enable early investigation of the electronic chip performance using commercial electronic design automation (EDA) tools with real chip information. Findings indicated new opportunities that arise for emerging novel interconnect technologies from the materials and process perspectives. These opportunities are evaluated based on potential benefits that are quantified with rigorous circuit-level simulations and requirements for key parameters are underlined. The impacts of various emerging interconnect technologies on the performances of emerging devices are analyzed to quantify the realistic circuit- and system-level benefits that these new switches can offer.Ph.D