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

S. Ongena, I. Sendeniz-Yüncü

Research output: Contribution to journalArticleScientificpeer-review

Abstract

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.
Original languageEnglish
Pages (from-to)3213-3224
JournalJournal of Banking and Finance
Volume35
Issue number12
DOIs
Publication statusPublished - 2011

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Turkey
Industry
Ownership
Diversified firms
Multinomial logit
Firm characteristics
Nationality
Small firms
Foreign banks
Islamic financial institutions

Cite this

Ongena, S. ; Sendeniz-Yüncü, I. / Which firms engage small, foreign, or state banks? And who goes Islamic? Evidence from Turkey. In: Journal of Banking and Finance. 2011 ; Vol. 35, No. 12. pp. 3213-3224.
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Which firms engage small, foreign, or state banks? And who goes Islamic? Evidence from Turkey. / Ongena, S.; Sendeniz-Yüncü, I.

In: Journal of Banking and Finance, Vol. 35, No. 12, 2011, p. 3213-3224.

Research output: Contribution to journalArticleScientificpeer-review

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