Determinants of non-performing loans and banking costs during the 1999-2001 Turkish banking crisis
by Omar Masood, Chris Stewart
International Journal of Risk Assessment and Management (IJRAM), Vol. 11, No. 1/2, 2009

Abstract: Using original survey data collected by the authors we investigate the determinants of non-performing loans and costs in the Turkish banking sector during the crisis period of 1999-2001. Employing ordered choice models, we find that variables measuring unnecessary government intervention and loans given to related companies significantly influenced both non-performing bank loans and the overall cost of the crisis. Poor credit risk assessment and a weak capital base of Turkish commercial banks have also led to a high percentage of non performing bank loans, whereas improper accounting practices, under capitalisation of Turkish banks, as well as weak regulation/supervision have been identified as variables which added to the high cost of the crisis.

Online publication date: Mon, 22-Dec-2008

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Risk Assessment and Management (IJRAM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com