DOI: 10.30586/pek.1820240 ISSN: 2587-2567

A Comparative and Regional Analysis of Financial Indicators by Provinces In Turkiye

Mesut Savrul
Show PDF Cite
This study examines the provincial and regional structure of financial development in Türkiye, addressing the limitation that national financial indicators often conceal substantial territorial disparities. Using cross-sectional data for all 81 provinces for 2022–2023, the paper analyses indicators of financial scale, depth, savings mobilisation, credit intensity, and branch access. The empirical strategy combines descriptive statistics, correlation analysis, regional comparison tests, principal component analysis, cluster analysis, robustness checks, and a supplementary log–log OLS regression. The findings reveal pronounced provincial and regional financial disparities. Financial scale is highly concentrated in metropolitan provinces, especially Istanbul and Ankara, while depth and access indicators show a broader west–east divide. Kruskal–Wallis tests confirm significant regional differences for all financial indicators. The PCA-based Financial Development Index is supported by a coherent common component, with PC1 explaining 68.34% of total variance. Istanbul and Ankara form the high-development financial core, while many eastern and southeastern provinces occupy the low-development periphery. The supplementary regression shows that deposits per capita are strongly and positively associated with credit per capita. The results indicate that provincial financial development in Türkiye is multidimensional, spatially concentrated, and structured by a core–periphery pattern requiring region-sensitive and cluster-sensitive policy responses rather than policies based on national averages alone.

More from our Archive