The Effect of Global Financial Crisis on the Change in Differences Between State Banks and Private Banks’ Liquidity Behavior: The Case of Turkish Deposit Banking

The aim of this paper is to analyze whether the 2008 global financial crisis significantly changed the differences between public and private deposit banks’ liquidity behavior in Turkey. The sample of this study covers public and private deposit banks which are operational in Turkey from 2005 to 2015 on the basis of quarterly released bank data. Empirical findings indicate that, contrary to the privately owned rivals, state-run deposit banks lowered their liquid assets in their balance sheets more than their private rivals and in return, they lent more for the purpose of eliminating the negative influences of crisis in Turkey