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

Date

2011-12-01

Author

Ongena, Steven
Şendeniz Yüncü, İlkay

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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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.

Subject Keywords

Economics and Econometrics, Finance

URI

https://hdl.handle.net/11511/38235

Journal

JOURNAL OF BANKING & FINANCE

DOI

https://doi.org/10.1016/j.jbankfin.2011.05.001

Collections

Department of Business Administration, Article

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Citation Formats

S. Ongena and İ. Şendeniz Yüncü, “Which firms engage small, foreign, or state banks? And who goes Islamic? Evidence from Turkey,” JOURNAL OF BANKING & FINANCE, pp. 3213–3224, 2011, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/38235.