Abstract:

Concentration is defined as the management of a large part of the total of resources and activities in the market by a very few units that have this collection. The study aimed at measuring the concentration level of the Turkish banking sector by K-bank concentration and Herfindahl-Hirschman concentration indicators. Based on the data on the activity size, loans and receipts, deposits, number of branches and number of staff for the period 1999-2019. Work, development and investment banks and deposit banks are carried out within the framework. In the K-bank concentration analysis, because the index is within the range of 40-60%, all sub-markets mostly showed a weak oligopoly character. In the undermarket of loans and receipts only in 2001 the index was below the limit of 40%, and the single competitive market group was found. In Herfindahl-Hirschman concentration analysis, all submarkets except the deposit submarket mainly remained in the 200-999 range and carried a weak oligopol valve. The findings of the number of branches and the number of employees to the sub-markets only resulted in a strong oligopol in 2001. The deposit submarket was in the weak oligopoly category in the periods 1999-2002 and 2012-2018; with the index rise to the range of 1000-1,799 in the periods 2003-2011 and June 2019, it was in the strong oligopoly market group. In general, the results of the analysis of both indicators were found to be compatible.

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Abstract:

Concentration is defined as the majority of the total resources and activities in the market being managed by very few of the units that own this total. In the study, it is aimed to measure the concentration level of the Turkish Banking Sector by K-bank concentration and Herfindahl-Hirschman concentration indices. Data on assets, loans and receivables, deposits, number of branches and number of workers for the period 1999- 2019 are taken as basis. The study was carried out within the framework of development and investment banks and deposit banks. In K-bank concentration analysis; due to the index being in the range of 40% - 60%, all sub-markets showed predominantly weak oligopoly character. In the index, loans and receivables sub-market, it was only below the 40% limit in 2001 and was in the monopolistic competition market group. In the Herfindahl-Hirschman concentration analysis, all sub-markets except the deposit sub-market remained predominantly in the range of 200 to 999 and carried the weak oligopoly characteristic. Findings for the sub-markets of the number of branches and the number of employees yielded results in favor of the strong oligopol only in 2001. The deposit sub-market was in the weak oligopol category in 1999-2002 and 2012-2018 periods. With the index rising to the range of 1000- 1,799, it was included in the strong oligopolic market group between 2003-2011 and June 2019. In general, the results of the analysis of both indices were found to be compatible.