The The factors that determine crises in Turkish banking sector

The purpose of this study is to identify the principal factors that causedthe crisis of the Turkish banking sector between 1992:1-2005:2. The studyaims to analyze the these factors? potential to cause crisis by performing thelogit models.In order to complete this analysis, DK (Exchanges of TÜFE BasedReal Cash Foreign Money Rate Calculated By Central Bank), E (TURKSTATRatio Of Inflation Consisting Of Consumer Price Index), BF (Interest Ratio OfGovernment Internal Getting In To Debt Auctioning), CR (Current AccountDeficit/GNP), KD (Changing In Credits), and MD (Changing At Bank Deposit)are chosen as the explaining variables. For the dependant variable, thecrisis, the dummy variable (L) has been used.The results of this econometric study is consistent with the economicexpectations. Based on the results obtained, the most meaningful factors thatincrease the possibility of crisis are identified as the foreign money rate, ratioof interest, amount of credit and the current account deficit/GNP ratio. Morespecifically, the changing at the credits and the current account deficit/GNPratio have more effect than the other explanatory variables. Overall, theapplied model has accurately estimated the previous banking crises.