Abstract

With the implementation of free market economy in Turkey starting from 1980, restrictions on foreign capital flows began to be abolished. Within the scope of international expansion in financial aspects, steps for integration with global financial markets were taken, and regulations were made. Accordingly, the number of foreign banks in Turkish banking system have increased since 1980, and reached an important scale in the sector. The share of foreign deposit banks’ total assets in the entire banking sector is at 22,8% level as of 2019. In this study, panel data analysis was performed to identify the factors affecting the Turkish currency assets of foreign deposit banks. The 11-year data for the 2009-2019 period were utilized in the study. Turkish Currency Assets / Total Assets was determined as the dependent variable in the analysis. The factors affecting the Turkish currency assets of foreign deposit banks were identified as Turkish Currency Liability / Total Liability [TPYUK], Turkish Currency Deposits / Total Deposits [TPMEV], and Turkish Currency Loans / Total Loans [TPKREDI]. Based on the study results the model formed was significant, and the ratio of independent variables for explaining the dependent variable in the model was approximately 48%. The independent variables TPYUK and TPKREDI were revealed to have a statistically significant positive effect on the dependent variable at 5% significance level. A 1-unit raise in TPYUK increased the dependent variable by 0,436 unit, and a 1-unit raise in TPKREDI by 0,033 unit. No statistically significant effect of TPMEV as the other independent variable was identified on the dependent variable.

Highlights

  • IntroductionInvestments in another country by individuals or entering the sector are as follows [3]: institutions located in one country is called a

  • Introduction disadvantagesThe advantages of foreign banks’Investments in another country by individuals or entering the sector are as follows [3]: institutions located in one country is called a

  • It is inferred from the table that the asset structure of the foreign deposit banks is substantially composed of Turkish currency, and that it is at a higher level than the Turkish Currency (TC) deposits in total deposits, indicating that they use mainly Turkish currency in their equity and other resources

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Summary

Introduction

Investments in another country by individuals or entering the sector are as follows [3]: institutions located in one country is called a. Foreign banks can encourage domestic ones to “international investment” or “foreign capital reduce their costs, investment”. A foreign bank can be described as an institution investing in the banking sector in more than one country and owning a bank. Foreign banks can own banks in other countries in two ways. The first is to found a bank in a foreign through competition. C. Foreign banks can increase domestic banks’

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