This paper investigates the evolution of systemic risk in the Turkish banking sector over the past two decades using co-movement of banks’ stock returns as a systemic risk indicator. In addition, we explore possible determinants of systemic risk, the knowledge of which can be a useful input...

This study examines the relation between leverage and asset growth in the Turkish banking sector, and finds that there is a statistically significant positive relationship between these two variables. This result indicates that the leverage ratio increases when there is positive asset growth,...