You are here

Black Swan Sticking out in Turkish Banking Sector

Journal Name:

Publication Year:

DOI: 
DOI: 10.17015/ejbe.2015.015.01
Abstract (2. Language): 
This article explores different aspects of an extraordinary event in Turkish banking sector: politically motivated seizure of Bank Asya by the state. We present how political motives play a key role in such an exceptional expropriation ignoring pillars of economic freedom. The attitude of the governing Justice and Development Party (AKP) on democratization path of Turkey is presented for further elaboration to bring revealing insight. Financial statement of Asia Participation Bank Inc. (Bank Asya) is detailed to indicate absence of economic ground for seizure. Our analysis on Bank Asya along with references to similar events and their repercussions point out possible severe legal enforcements against government authorities with political more than justice concerns and prejudgment.
1
19

JEL Codes:

REFERENCES

References: 

Akyol, M. (2014, Mar. 19). McCarthyism Comes to Turkey. The New York Times. Retrieved
from http://www.nytimes.com/2014/03/20/opinion/akyol-mccarthyism-comes-toturkey.
html?_r=1
Anderson, C. (2011, Nov. 9). Foe of Venezuela's Chavez seeks $1B for seizures. Bloomberg
Business. Retrieved from http://www.businessweek.com/ap/financialnews/D9QTC6480.htm
Amnesty International (2013), Gezi Park Protests: Brutal denial of the right to peaceful
assembly in Turkey. Retrieved from https://www.amnestyusa.org/sites/default/
files/eur440222013en.pdf
Bilgin, F. (2013), Turkey: Politics of Gezi Protests. Rethink Institute, Washington DC.
Retrieved from http://www.rethinkinstitute.org/files/Bilgin%20-%20Gezi%20Protests.pdf
Bozkurt, T. (2015, Jun. 3). Illegal Intervention in Bank Asya collapses. Today's Zaman.
Retrieved from http://www.todayszaman.com/columnist/turhan-bozkurt/illegalintervention-
in-bank-asya-collapses_382945.html
Çetingüleç, M. (2015, Feb. 10). Why Did Turkey Seize Bank Asya? Al-Monitor. Retrieved from
http://www.al-monitor.com/pulse/originals/2015/02/turkey-erdogan-anti-we...
Diamond, D. & Dybvig, P. (1983). Bank Runs, Deposit Insurance, and Liquidity, Journal of
Political Economy, 91, 401-419. http://dx.doi.org/10.1086/261155
Doğan, M.K. & Bozdemir, G. (2014). The Effects of Credibility on Interest Rates in Turkey,
Eurasian Journal of Business and Economics, 7 (14), 71-90.
Doğan, B. (2015, Apr. 9). Former CB governor: Bank Asya is strong, nation will suffer if gov't
sinks it. Today's Zaman. Retrieved from http://www.todayszaman.com/anasayfa_former-cbgovernor-
bank-asya-is-strong-nation-will-suffer-if-govt-sinks-it_377560.html
Ebaugh, H. R. (2010). The Gülen Movement: A Sociological Analysis of a Civic Movement
Rooted in Moderate Islam. New York and Heidelberg: Springer.
http://dx.doi.org/10.1007/978-1-4020-9894-9
El-Gamal, M. A. & Inanoğlu, H. (2000). Islamic banking in Turkey (1990-2000) Boon or Bane
for the Turkish Financial Sector? Proceedings of the Fifth Harvard University Forum on
Islamic Finance: Dynamics and Development, Cambridge, Harvard University, 7-20.
Esposito, J.L. & Yilmaz, I. (2010). Transnational Muslim faith-based peacebuilding: Initiatives
of the Gülen Movement, European Journal of Economic and Political Studies, 3 (SI), 87-102.
Finkelman, P. (2006). Lynching and Mob Violence. In The Encyclopedia of African American
history: 1619-1895: from the colonial period to the age of Frederick Douglass. (Vol. 1, pp.
307-313). Oxford, UK: Encyclopedia of African American History.
Franklin, A. & Gale, D. (2000). Financial Contagion, Journal of Political Economy, 108, 1-33.
http://dx.doi.org/10.1086/262109
Gertler, M., & Kiyotaki, N. (2012). Banking, Liquidity and Bank Runs in an Infinite-Horizon
Economy. Cambridge, NBER Working Paper No. 19129.
Black Swan Sticking out in Turkish Banking Sector
EJBE 2015, 8 (15) Page | 19
Geyikci, S.Y. (2015). Gezi Park Protests in Turkey: A Party Politics View, The Political
Quarterly, 85(4), 445-453. http://dx.doi.org/10.1111/1467-923X.12112
Hale, W. & Özbudun, E. (2010). Islamism, Democracy and Liberalism in Turkey. London and
New York: Routledge.
Islamic Development Bank (2015). What is Sukuk? A secure return through an ethical
investment. Retrieved from
http://thatswhy.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Intern...
en/sukuk/what-is-sukuk.html
Kubat, M. (2014). Proceedings from 2nd Economics & Finance Conference '14: Does Basel III
Bring Anything New? A Comparison between Capital Accords Basel II and Basel III. Retrieved
from http://iises.net/proceedings/2nd-economics-finance-conference-vienna/tab...?
cid=4&iid=19&rid=1713
McKinnon, R. I. (1973). Money and Capital in Economic Development. Washington, DC:
Brookings Institution.
O'Byrne, D. (2014, October 17). Breaking the Bank Asya in Turkey. BNE Intellinews. Retrieved
from http://www.bne.eu/content/story/breaking-bank-asya-turkey
Özbudun, E. (2014). AKP at the Crossroads: Erdoğan's Majoritarian Drift, South European
Society and Politics, 19(2), 155-167. http://dx.doi.org/10.1080/13608746.2014.920571
Peker, E. (2015, May 31). Turkish Authorities Seize Bank Asya. The Wall Street Journal.
Retrieved from http://www.wsj.com/articles/turkish-authorities-seize-bank-asya-
1433102306
Ritter, L. S., Silber, W. L., & Udell, G. F. (2009). Principles of Money, Banking and Financial
Markets 10th Ed. Boston: Addison-Wesley.
Rousseau, P. & Sylla, R. (2003). Financial Systems, Economic Growth, and Globalization. In
Bordo, M. D, Taylor, A. M., & Williamson, J. G. (Eds.), Globalization in Historical Perspective
(373-416). Chicago: University of Chicago Press. Retrieved from
http://www.nber.org/chapters/c9594.pdf
Sezer, S. (2014, October 5). Loyal depositors shoulder Turkey's Bank Asya while political war
rages. Reuters. Retrieved from http://www.reuters.com/article/2014/10/05/us-turkeybankasya-
idUSKCN0HU0B920141005
Shaw, E. (1973). Financial Deepening in Economic Development. New York: Oxford
University Press.
Skubik, D.W. (2009) Fethullah Gülen, Islamic Banking, and Global Finance, In International
Corporate Responsibility Series, A Survey of International Corporate Responsibility, Vol 4,
289-304.
Takemura, T. & Kozu, T. (2009). An Empirical Analysis on Individuals’ Deposit Withdrawal
Behaviors Using Data Collected through a Web-Based Survey, Eurasian Journal of Business
and Economics, 2 (4), 27-41.
U.S. Department of State, Bureau of Democracy, Human Rights, and Labor. (2011). 2010
Human Rights Report: Venezuela. Retrieved from http://www.state.gov/j/drl/rls/
hrrpt/2010/wha/154523.htm
Wheelock, D. C. (2012). Too Big To Fail: The Pros and Cons of Breaking up Big Banks, St. Louis
FED's The Regional Economist, Oct., 10-11.

Thank you for copying data from http://www.arastirmax.com