FOREIGN ENTRY INTO THE TURKISH BANKING SECTOR

Abstract

The most important actor of the financial system in developing countries is the banking sector. from the 1980sThen, with the transition to a free market economy, the Turkish financial system began to restructuring.and liberalization activities in financial markets gained momentum. On the one hand, at the international levelThe increasing importance of the banking sector, on the other hand,Incentives accelerated the entry of foreign banks into the Turkish banking system after 1980.Especially since the early 1990s, as a result of liberalization policies in financial markets,The interest of foreign banks in the Turkish banking sector has started to increase. Growth in the economyand opening up made banking a profitable field and foreign banks were able to get a share of this profit.have increased their investments in Turkey in order to However, barriers to entryHowever, due to long-term high inflation and instability in Turkey, foreignthe share of banks in the system has not changed much.After the November 2000 and February 2001 crises, both the economy and the banking sectorThe positive developments achieved with the measures taken regarding the restructuring of the Turkishincreased the interest of foreign capital in the banking sector once again. Banking in the post-crisis periodreforms put into practice with the restructuring of the system ofand the gains made have made the Turkish banking sector attractive to foreign investors.The steady growth of banking assets, the increase in loan volume and highprofit rates led foreign investors to invest in the Turkish banking system. surveillance andIn addition to the improvements in the auditing system, the new Banking Law was passed in 2005.The interest of foreigners in the sector has been strengthened.In this study, the sector of foreign capital banks established in Turkey for the period of 2010-2017status was examined. In the study, besides various financial indicators, especiallyThe ratios used extensively in comparisons were also used. In analysis, foreignIt has been concluded that the share of banking tends to increase over the years.