Panel Logit Models: An Application on Banking Sector

Nowadays, it is vital for banks to increase their market shares due to the fact that the banking sector has an intense competition and a wide range of competitive products and services. The fact that banks constantly monitor their market shares and make the necessary analyzes in this regard will enable them to take precautions in case of a negative course. In this study, taking into account the impact of the February 2001 crisis, variables which were effective in the change of market share of banks were estimated by using Panel Logit Models for the period of 1990-2007. In the study, 20 financial ratios were used as explanatory variables and total loans was taken as a dependent variable. It is aimed that the results of the analysis will guide the short and medium term planning in the banking sector