REGIONAL AND TEN PROVINCES CONCENTRATION IN BANKING SECTOR OF TÜRKİYE

Abstract

Turkish financial system is a bank-based system. In bank-based systems, banks play a leading role
in mobilizing savings, allocating credit. It is important where financial intermediary banks’
operations concentrate on. Hence, “the geographic concentration in banking” means that they
operate mostly in some specific places or concentrate on some places. The geographic distributions
of banking operations are studied relatively less subject. However, this kind study let know about
where the reel economy concentrate on and it can be used on eliminating regional development
disparities and forming the regional development policies. In this study, it is considered the banking
sector regional and provincial data of Turkey between 2007-2020, including mostly deposits and
credits, and then produced tables on regional and ten provinces concentrations. It is seen that the
29,92 % of 7568 branches in 2007 operates in İstanbul. İstanbul, is placed as a region in regional
disturbances table, is followed by Aegean Region with 15,24 %, West Anatolia with 11,84 % and
Mediterranean Region with 10,53 % . In 2020 year, it is seen that these rates change orderly as
26,33 %, 14,94 %, 11,88 %, 11,45 %. It is observed that the 43, 51 % of all deposits in 2007 is in
İstanbul and is used the 43,68 % of all credits in İstanbul. West Anatolia follows İstanbul with
20,39 % and 13,34 % in deposits and credits. In 2020, it is observed that the deposit share of
İstanbul increased to 46,30 % and credit shares of İstanbul decreased to 41 %. İstanbul, Ankara
and İzmir, high populated cities of Turkey, have more bank branches as well and so it is observed
that deposits are saved mostly there and allocated loans mostly there. As the number of ATM, POS
machines and card acceptor, the rank does not change. As a result, the geographic concentration in
Turkish banking sector is high even though it decrease a little bit. There are both of regional
concentration and 10 provinces concentration on branch number, deposit and credits and also it is
seen that these concentrations are in the developed regions. It can be comment that these
concentrations are the factors increased regional disparities.