ANALYSIS OF THE BANKING SECTORS OF THE PIIGS COUNTRIES AND TURKEY AFTER THE EUROPEAN DEBT CRISIS
AVRUPA BORÇ KRİZİ SONRASI PIIGS ÜLKELERİ VE TÜRKİYE'DE BANKACILIK SEKTÖRÜNÜN ANALİZİ

Author : Faruk AKIN
Number of pages : 59-75

Abstract

With an ongoing influence of the global crisis, which had its beginnings in the USA, on the Euro Zone, a Debt Crisis in Europe erupted when it was understood that Greece had a higher public debt and budget deficit than what it was thought to be at that time and that Ireland, Portugal, Spain and Italy were also suffering under similar dire conditions, Whereas, with the decision taken by the EU Commission in 2016, it was agreed upon that the Turkish banking sector possessed a system of regulations and supervisions that were equivalent to that of EU. The aim of this study is to comparatively analyze of PIIGS countries (Portugal, Ireland, Italy, Greece and Spain) whose economic problems became clear after the European Debt Crisis and the Turkish banking sector. Fort his purpose, firstly the causes and effects of European Debt Crisis will be discussed upon and the macroeconomic performances of PIIGS countries after European Debt Crisis and Turkey. Then, for the period of 2012-2016, main scalar quantities (bank count, branch count, staff count, active size, credit size, deposit size) performance indicators (credit/deposit ratio, return on equity) and risk indicators (capital adequacy ratio, non-performing loans/total gross loans) of the PIIGS countries and the Turkish banking sector will be comparatively analyzed. As a result of this study, it can be seen that increasing non-performing loans and decreasing return on equity generate a huge risk for the banking sectors of the PIIGS countries. As opposed to the banking sectors of the PIIGS countries, it can be seen Turkish banking sector maintains a healthy growth.

Keywords

Debt Crisis, Non-performing Loans, Return on Equity, PIIGS Countries, Turkey

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