ABSTRACT

The number of bank branches and personnel, which has especially lately a significant increase trend, in Turkish banking sector constitutes the subject of this study. It is examined whether the observed numerical increase is parallel to or affected by the patterns of basic economical indicators. Ten private equity commercial banks of Turkey are included to the study. The time interval is between the third quarter of 2002 and second quarter of 2008. The relationship between the extent of the number of bank branches and personnel, and the basic indicators of economical stability is examined with random effects panel data models.