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Bank Regulation in Dollarized Economies: The Case of Turkey
Center for International Policy Studies, Economics Department, Fordham University, 441 E. Fordham Rd., Bronx, NY 10458, USA
Social Studies Department, School of Liberal Arts, SUNY-FIT, 227 W 27th Street, NY 10001, USA
Brickfield Road Associates, 8 Onikoyi Street, Parkview Estate, Ikoyi, Lagos 101233 , Nigeria
Centrum Cat´olica, Daniel Aloma Robles 125, Los Alamos de Monterrico Surco, Lima 33, Peru
* Author to whom correspondence should be addressed.
Received: 16 September 2013; in revised form: 17 October 2013 / Accepted: 30 October 2013 / Published: 13 November 2013
Abstract: Regulators in emerging markets are increasingly curtailing the practice of foreigncurrency lending. In such a move Turkish regulatory authorities banned foreign currencylending to households in 2009. This paper examines the evolution of financial dollarization inTurkey in the 2002–2009 period by looking the currency composition of loans and deposits inthe banking system and the macroeconomic developments. We find that the Turkish bankingsystem was unhedged against currency fluctuations and the regulators acted preemptively inbanning the practice.
Keywords: dollarization; banking regulation; Turkish banking system
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MDPI and ACS Style
Rengifo, E.W.; Ozsoz, E.; Akinkunmi, M.A.; Court, E. Bank Regulation in Dollarized Economies: The Case of Turkey. Int. J. Financial Stud. 2013, 1, 137-153.
Rengifo EW, Ozsoz E, Akinkunmi MA, Court E. Bank Regulation in Dollarized Economies: The Case of Turkey. International Journal of Financial Studies. 2013; 1(4):137-153.
Rengifo, Erick W.; Ozsoz, Emre; Akinkunmi, Mustapha A.; Court, Eduardo. 2013. "Bank Regulation in Dollarized Economies: The Case of Turkey." Int. J. Financial Stud. 1, no. 4: 137-153.