Empirical Analysis of Competition Dynamics by Competition Determination Approaches: Turkish Banking Sector for 1997- 2014

Due to the complex and close interaction of banks with other economic units, any trouble in banking sector might have repercussion on the whole economy which makes the market structure and competition in banking sector as a cynosure. Business world is facing with gradually increasing competition. It seems that the existence of firms depends on the power and the advantage of their competitiveness. The purpose of this study is to analyze the competition structure and the market conditions of Turkish banking system for the periods 1997-2014. Despite the existence of a number of studies about competition in banking sector, there is still a lack of the studies which has been done with Lerner s Index. Due to this fact, Lerner’s Index is used in this study. Bank level determinants of Lerner Index are analyze using Panel Data Regression Method and were reached of actors effecting competitive behavior in Turkish Banking Sector.