Banks and Violence

• In Event: The Economics of Violence

Abstract

Banks occupy a central role in the market and more specifically in economic development and economic recovery discussions. Thus, the lack of attention to them in studies of political violence is puzzling and problematic. Moreover, there are many different types of banks. One relevant dimension along which banks differ from each other has to do with ownership. We argue that this differentiation will result in banks responding differently to disputes, civil wars and terrorism. With original data that we have collected, we are able to demonstrate the extent to which banks over time are influenced by the violence as well as the main mechanisms at play which results in some banks being affected more than others. Finally, we demonstrate the implications for post-violence local economies and communities.

Authors

• Resat Bayer, Koç University

• Ozge Kemahlioglu, Sabanci University

• Emine ARI EROL, Koc University (Istanbul/Turkey)