Effects to fiscal dominance of variables specific banking sector: Turkey application (1980-2012)

In Turkey, the banking sector has been an important place in the financial system by speeding up the development since 1980. The banking sector located in the financial system affects positively to economic life to meet the funding needs of businesses and it has influence significantly on the fiscal dominance. The banking sector has not been studied much about the effects on the fiscal dominance. This study was done to examine the impact on the banking sector of fiscal dominance. The regression analysis was made between thirteen independent variables and to set up three separate models for three dependent using of data 32 years covering the years from 1980 to 2012. As a result of the study; to fiscal dominance of the private sector of variables consumer price inflation and bank income-expense structure; to fiscal dominance of the public sector of variable capital adequacy; to total fiscal dominance of Turkey's of variable GDP deflator have been found any effects. To fiscal dominance of the private sector of variable capital adequacy; to fiscal dominance of the public sector of variables exchange rate and deposit rates and to total fiscal dominance of Turkey's of variables asset quality and profitability of the bank's have been found to be significantly and negatively. To fiscal dominance of the private sector of variables exchange rate, the variable interest rate on deposits and loans; to fiscal dominance of the public sector of variables consumer price inflation, credit, asset quality of bank's, liquidity and income-expense structure and to total fiscal dominance of Turkey's of variables exchange rate, certain of profitability and asset quality of the bank's have been found to be significantly and positively.