A Dialogue of the Factors THAT PROVIDE Banking institutions Its Prominence in Turkish Economy

The banking sector constitutes vast majority of the Turkish economic climate. Banks carry out an excellent portion of the actions occurring in both money and capital marketplaces. The talk about of the banking sector in the financial system by the finish of March 1997 was 71 %. Turkey's financial system and its own banking sector are nearly synonymous as a consequence of the country's economical and historical development. There are numerous of factors that provide banking its prominent purpose in Turkish economy. They are:

The economic composition peculiar to Turkey.

The choice to turn assets into long-term investments through banking institutions for the aims targeted in the advancement ideas and programmes, and the establishment of banking institutions by the status to finance selected sectors.

The extensive program of continental European banking practices as a model in the legal composition of the bank operating system, and an emerging capital market that can contend with the banking sector in the forthcoming years.

The production of the Turkish banking sector could be divided into six periods which differ concerning policy and method: The Period of the Money-Changers and the Galata Bankers (pre-1847): During this era, all quasi-banking actions were completed by money-changers The Galata bankers consisted largely of the ethnic-minorities in Istanbul.

The Period of Foreign Banks (1847-1908):