State ownership and bank lending: evidence from Turkish banking

Dimitris K. Chronopoulos; John O.S. Wilson; Muhammed H. Yilmaz

doi:10.1504/IJBAAF.2025.146545

State ownership and bank lending: evidence from Turkish banking

Dimitris K. Chronopoulos, John O.S. Wilson^*, Muhammed H. Yilmaz

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

We investigate state bank lending behaviour during crisis periods by exploiting the global financial crisis as an exogenous shock, and a high-frequency spatial banking dataset. Using Turkey for the period 2007Q4–2011Q4 as a setting, our results suggest that state banks maintain lending relative to domestic private and foreign banks. Moreover, state banks appear to play a mitigating role in alleviating market failures rather than engaging in politically motivated lending. Overall, our results highlight the importance of state bank lending during periods of financial turmoil.

Original language	English
Pages (from-to)	5-43
Number of pages	39
Journal	International Journal of Banking, Accounting and Finance
Volume	15
Issue number	1-2
DOIs	https://doi.org/10.1504/IJBAAF.2025.146545
Publication status	E-pub ahead of print - 2 Jun 2025

Keywords

DiD
difference-in-differences
market failures
political motives
state banks

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title = "State ownership and bank lending: evidence from Turkish banking",

abstract = "We investigate state bank lending behaviour during crisis periods by exploiting the global financial crisis as an exogenous shock, and a high-frequency spatial banking dataset. Using Turkey for the period 2007Q4–2011Q4 as a setting, our results suggest that state banks maintain lending relative to domestic private and foreign banks. Moreover, state banks appear to play a mitigating role in alleviating market failures rather than engaging in politically motivated lending. Overall, our results highlight the importance of state bank lending during periods of financial turmoil.",

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AU - Yilmaz, Muhammed H.

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AB - We investigate state bank lending behaviour during crisis periods by exploiting the global financial crisis as an exogenous shock, and a high-frequency spatial banking dataset. Using Turkey for the period 2007Q4–2011Q4 as a setting, our results suggest that state banks maintain lending relative to domestic private and foreign banks. Moreover, state banks appear to play a mitigating role in alleviating market failures rather than engaging in politically motivated lending. Overall, our results highlight the importance of state bank lending during periods of financial turmoil.

KW - DiD

KW - difference-in-differences

KW - market failures

KW - political motives

KW - state banks

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JF - International Journal of Banking, Accounting and Finance

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ER -

State ownership and bank lending: evidence from Turkish banking

Abstract

Keywords

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