The Strategic Implications of Asset and Liability Allocation in the Turkish Banking Industry

Posted: 10 Apr 2011

See all articles by Cenktan Ozyildirim

Cenktan Ozyildirim

Istanbul Bilgi University

Begumhan Ozdincer

Istanbul Bilgi University

Date Written: November 6, 2009

Abstract

This study aims to analyze whether banks' deviation from the mainstream in terms of asset and liability allocation enables them to perform better than their competition. Overall, deviation in the liability structure seems to have a significant impact on performance. In a second regression, the results obtained from the analysis of liability allocation are further examined by focusing on the effects of the deposit base on bank performance. Our analysis brings out the significance of liability allocation and of the effect of deposit strategies as a primary source of funding. The major difference of this study is that we focus primarily on both asset and liability allocation strategies of banks and we further analyze the components of the liability structure to evaluate the impact of liability deviation on the banking strategy.

Keywords: banking, liability allocation, strategic deviation

JEL Classification: G21

Suggested Citation

Ozyildirim, Cenktan and Ozdincer, Begumhan, The Strategic Implications of Asset and Liability Allocation in the Turkish Banking Industry (November 6, 2009). Emerging Markets Finance and Trade, Vol. 47, No. 1, 2011. Available at SSRN: https://ssrn.com/abstract=1804192

Cenktan Ozyildirim (Contact Author)

Istanbul Bilgi University ( email )

Eski Silahtarağa Elektrik Santralı
Silahtarağa Mah. Kazım Karabekir Cad. No: 1 Eyüp
Istanbul, 34060
Turkey

Begumhan Ozdincer

Istanbul Bilgi University ( email )

kazim karabekir caddesi no 1
Istanbul, 34060
Turkey
0090 212 3117793 (Phone)
0090 212 4279440 (Fax)

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