An Analysis of Mergers and Acquisitions in the Turkish Banking Sector

Abstract

This chapter explores various aspects of mergers and acquisitions in the banking industry within a simple model that allows explicit comparison of sector performance before and after the mergers and acquisitions. The industry structure we look at involves a few dominant banks and a competitive fringe, which we take as the structure most likely to resemble the Turkish banking industry in the aftermath of the ongoing restructuring process. Using a reasonable set of parameters to simulate the model, we perform comparative statics exercises regarding the impact of mergers among domestic as well as with foreign banks on equilibrium outcomes.

Citation

Mumcu, A. and Ünal Zenginobuz, E. (2005), "An Analysis of Mergers and Acquisitions in the Turkish Banking Sector", Neaime, S. and Colton, N.A. (Ed.) Money and Finance in the Middle East: Missed Oportunities or Future Prospects? (Research in Middle East Economics, Vol. 6), Emerald Group Publishing Limited, Leeds, pp. 133-162. https://doi.org/10.1016/S1094-5334(05)06007-3