Int. J. Financial Stud. 2013, 1(4), 137-153; doi:10.3390/ijfs1040137

Bank Regulation in Dollarized Economies: The Case of Turkey

1 Center for International Policy Studies, Economics Department, Fordham University, 441 E. Fordham Rd., Bronx, NY 10458, USA 2 Social Studies Department, School of Liberal Arts, SUNY-FIT, 227 W 27th Street, NY 10001, USA 3 Brickfield Road Associates, 8 Onikoyi Street, Parkview Estate, Ikoyi, Lagos 101233 , Nigeria 4 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
(This article belongs to the Special Issue The Future of Banking Regulation and Financial Stability)
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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.

AMA Style

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.

Chicago/Turabian Style

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.

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