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dc.contributor.authorYılmaz, Ensar
dc.contributor.authorMüslümov, Alövsat
dc.date.accessioned2015-03-24T14:03:14Z
dc.date.available2015-03-24T14:03:14Z
dc.date.issued2008
dc.identifier.citationYILMAZ, E., MÜSLÜMOV, A. (2008). Deposit insurance and moral hazard problem: the case of Turkish banking system. Applied Economics, 40 (16), pp. 2147-2163. http://dx.doi.org/10.1080/00036840600949306.en_US
dc.identifier.issn0003-6846
dc.identifier.other000258020100009 (WOS)
dc.identifier.urihttp://dx.doi.org/10.1080/00036840600949306
dc.identifier.urihttp://hdl.handle.net/11376/1175
dc.description.abstractWe investigate the effect of full deposit insurance introduced in 1994 on the financial performance of Turkish commercial banks. We construct a model, under reasonable assumptions, with deposit insurance where banks undertake excessive risk - moral hazard risk. Empirical investigation using experimental design approach supports our moral hazard hypothesis. Our findings indicate that banks subject to the moral hazard behaviour show significant increases in foreign exchange position risk and deterioration in capital adequacy relative to their benchmark after introduction of full deposit insurance system. We relate this excessive risk-taking to the moral hazard behaviour by commercial banks. The research results indicate that complete deposit insurance system distorts the incentive structure of commercial banks and thus, prevents proper functioning of market discipline mechanism and leads to the taking excessive risk-taking.en_US
dc.language.isoengen_US
dc.publisherTaylor & Francisen_US
dc.relation.isversionof10.1080/00036840600949306en_US
dc.rightsinfo:eu-repo/semantics/closedAccessen_US
dc.subjectMarket Disciplineen_US
dc.subjectRisken_US
dc.subjectInstitutionsen_US
dc.subjectInformationen_US
dc.subjectPanicsen_US
dc.titleDeposit insurance and moral hazard problem: the case of Turkish banking systemen_US
dc.typearticleen_US
dc.relation.journalApplied Economicsen_US
dc.contributor.departmentDoğuş Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, İşletme Bölümüen_US
dc.contributor.authorIDTR11200en_US
dc.identifier.volume40en_US
dc.identifier.issue16en_US
dc.identifier.startpage2147en_US
dc.identifier.endpage2163en_US


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